This week, cryptocurrency investors are paying attention to three significant events in the US that could substantially impact the dynamics of the digital assets market.
1. Release of inflation data (CPI):
On Tuesday, March 12, the Consumer Price Index (CPI) data for February will be released. Inflation is expected to be 0.4% month-over-month, matching the previous month. The annual figure is projected at 6.0%, below January's 6.4%. If the actual data exceeds expectations, it could heighten concerns about further interest rate hikes, negatively affecting risk assets, including cryptocurrencies.
2. Federal Reserve (Fed) meeting:
On March 15, the Fed will hold a meeting to discuss further monetary policy. Investors expect a 25 basis point increase in the base interest rate, bringing it to a range of 4.75%–5.00%. However, considering recent economic data, some analysts do not rule out a more aggressive 50 basis point increase. Higher interest rates may reduce the attractiveness of investments in cryptocurrencies as yields on traditional financial instruments increase.
3. Reporting by major tech companies:
This week, giants like Apple, Microsoft, and Alphabet will release their quarterly financial results. These companies' metrics could reflect the overall state of the economy and investor sentiment. Strong results may support the stock market and, indirectly, the cryptocurrency market. Weak figures, on the contrary, may heighten concerns about slowing economic growth, negatively affecting risk assets.
Thus, the combination of inflation data, Fed decisions, and corporate reporting will create volatility in financial markets, including the cryptocurrency market, this week. Investors should closely monitor these events and consider them when making trading decisions.