Bitrabo Editorial
The digital asset market is likely to experience high volatility this week after a major sell-off of altcoins and a moderate drop in Bitcoin prices on Friday. Traders should brace themselves for the most explosive week of the year.
The upcoming trading week starting today will be filled with tremendously significant events such as the U.S Consumer Price Index (CPI) and Producer Price Index (PPI) release, the U.S. Federal Reserve Bank (Fed) interest rate decision, the Ripple v. SEC court case verdict, the SEC response to Coinbase`s rulemaking request, a U.S. District Court hearing on the SEC`s request for a preliminary restraining order against Binance US, and many other important events.
Tuesday is Set to be a Blockbuster Day
Tuesday encompasses all the important events such as the release of the latest U.S. inflation data for the month of May by the U.S Bureau of Labor Statistics at 8:30 am EST. Over the past few months, the annualized CPI (YoY) has declined sharply, dropping to 4.9% in April, and for May, experts predict a further decline to 4.1%. This may improve the chances of a pause in the Fed’s interest rate, and it can be expected to benefit the financial market as well as the Bitcoin and crypto market.
The Bitcoin Market will also profit if there is any positive surprise in the core inflation rate and month-on-month inflation rates since these numbers remained at elevated levels lately.
A very important crypto-related event that day will be the US Securities and Exchange Commission (SEC) meeting to respond to Coinbase’s petition for rulemaking.
Another crucial crypto-related event will be the hearing on the SEC’s temporary restraining order (TRO) against Binance US at 2:00 pm EST. Last week, the SEC requested a federal judge in Washington, D.C., to freeze the assets of Binance’s US subsidiary.
Also, Tuesday could be paramount to the crypto market as internal SEC Hinman documents, if unsealed, will certainly provide insight into Ethereum’s (ETH) previous classification as a non-security. This classification is now being challenged by the SEC Chairman Gary Gensler. Tuesday also marks the end of the public comment period for the SEC’s proposed expanded definition of an exchange, which could require DEXs to register as securities exchanges.
Other Crucial Events This Week
The Fed will reveal its newest interest rate decision announcement on Wednesday, June 14. Most recently, the Fed and its Chairman had kept to their hawkish rhetoric and raised the key interest rate to 5.25% by another 25 basis points. However, only 26% of market participants still anticipate another rate hike of 25 basis points. Almost all are expecting a pause in interest rate hikes by the Fed considering the slowly declining condition of the US economy and labor market.
Also on Wednesday, the Producer Price Index (PPI) will be released. PPI inflation data for the U.S. showed a welcome drop in both core and headline numbers in April. The YoY comparison for April showed a 2.3% increase versus expectations of 2.5%, and in May, it may increase only to 1.5%. Core PPI was 3.2%, below expectations of 3.3% in April, and in May, it is expected to be 2.9%.
Other significant events to mention are jobless claims on Thursday and customer sentiment on Friday. Therefore, this week is full of extremely important events that may cause Bitcoin and crypto markets to react in a highly volatile manner.
At present, the Bitcoin price is $25,843 and is higher than the 200-day EMA (blue line).
Featured image from iStock, chart from TradingView.com