Bitcoin faces hurdles surpassing $43K after a dip linked to the Federal Reserve's rate hike stance. As altcoins navigate challenges, attention turns to significant US economic data releases starting February 5, which could impact Bitcoin's path in the weeks ahead, as highlighted by The Kobeissi Letter.
So, what's next for the market? Here's all you must know
Could crucial US Economic Updates Be Make-or-Break Events?
These key releases, slated for Monday and Thursday, may not significantly sway crypto markets but are integral economic indicators that reflect broader market sentiment.
On Monday, Federal Reserve officials will comment on the interest rate decision made last week. This can impact cryptocurrency markets as investors look for insights into the central bank's stance.
The dynamic Thursday will open with the release of S&P Services PMI, ISM non-manufacturing PMI data, and anticipated jobless claims data. These indicators will guide how the market will react in the coming weeks.
But expect the real firecrackers throughout the week, when more than half a dozen US Central Bank members, including Neel Kashkari, Loretta Mester, Patrick Harker, Adriana Kugler, Michelle Bowman, Tom Barkin, and Lorie Logan, will deliver speeches. These speeches provide insight into the central bank's thinking and how recent economic reports may impact future policies.
Other events and What to Expect?
The week will also see last week's claim of Fed chairman Jerome Powell, who indicated that a rate cut in March was unlikely as officials seek more evidence of inflation control. However, Investors are keen to know how recent economic data will shape official opinions on future interest-rate decisions, with the next one scheduled for March 20. Treasury Secretary Janet Yellen will testify before the Senate Banking Committee on Thursday, delivering the department's crucial annual report on US financial stability.
There aren't many big economic reports this week, so investors focus on earnings from major companies in retail, food, automotive, entertainment, and pharmaceuticals. Expect updates on how well these key industries are doing.
How's Altcoin Reacting?
In the crypto market, sentiments are mixed, with limited actions from major altcoins. The market has cooled, with a 1.3% drop in total capitalization to $1.7 trillion. Bitcoin struggled to surpass $43,000, slipping 1.4% to $42,437, and Ethereum slipped slightly to $2,296.92 but saw a 35.20% increase in trade volume to $5.80 billion. While other altcoins like XRP, Solana, and Cardano saw similar ups and downs without a major impact.
