This week, cryptocurrency investors are paying attention to three significant events in the USA that could significantly impact the dynamics of the digital asset market.
1. Publication of inflation data (CPI):
On Tuesday, March 12, the Consumer Price Index (CPI) data for February will be published. Inflation is expected to be 0.4% on a monthly basis, which corresponds to the previous month. The annual rate is projected at 6.0%, which is lower than January's figure of 6.4%. If the actual data exceeds expectations, it could heighten concerns about further interest rate hikes, negatively affecting risky assets, including cryptocurrencies.
2. Federal Reserve System (FRS) meeting:
On March 15, the FRS meeting will take place, where further monetary policy will be discussed. Investors expect a base interest rate increase of 25 basis points, bringing it to the range of 4.75%–5.00%. However, considering recent economic data, some analysts do not rule out a more aggressive hike of 50 basis points. Higher interest rates may reduce the attractiveness of investments in cryptocurrencies, as the yields of traditional financial instruments increase.
3. Reports from major tech companies:
This week, giants such as Apple, Microsoft, and Alphabet will publish their quarterly financial results. The performance of these companies may reflect the overall state of the economy and investor sentiment. Strong results can support the stock market and indirectly the cryptocurrency market. Weak performance, on the contrary, may heighten concerns about slowing economic growth, negatively affecting risky assets.
Thus, the combination of inflation data, FRS decisions, and corporate reporting will create volatility in the financial markets this week, including the cryptocurrency market. Investors should closely monitor these events and consider them when making trading decisions.