The cryptocurrency market shows volatility with Bitcoin around $118,000 and Ethereum exceeding $4,100. Analysts predict further growth may hinge on easing high-interest rates.
Influence of Macroeconomic Indicators
Important macroeconomic reports such as the Consumer Price Index (CPI) impact expectations regarding changes in interest rates. This month, we anticipate a CPI report demonstrating inflation levels, including the impact of housing and energy prices. Any exceeding expectations may decrease investor appetite for risk assets.
Impact of Retail Sales Data
Strong retail sales data can positively affect stock markets and cryptocurrencies. However, if results exceed expectations, it may lead to a hawkish stance by the Federal Reserve, limiting crypto growth. Conversely, weak figures could trigger recession concerns and negatively affect the market.
Prospects for Bitcoin and Altcoins
Bitcoin risks dropping below $118,500 if it cannot hold its current positions. The ETHBTC chart is expected to be a key indicator showing liquidity moves from Bitcoin into altcoins. Given current macroeconomic conditions, cautious bears may lead to increased selling volumes.
The future of the cryptocurrency market will rely on several macroeconomic factors, including data on tariffs and inflation. Investors should closely monitor upcoming reports and market changes.
