This month, key economic data and political decisions in the U.S. may influence the cryptocurrency market. New regulations and tariffs are under discussion, which can induce market fluctuations.
How Will Upcoming Economic Data Influence Crypto?
On Tuesday, attention will focus on the release of the Consumer Price Index (CPI) for June, expected to increase by 0.3% monthly and 2.6% yearly. If the CPI data surpasses expectations, it could jeopardize the anticipated interest rate cut by the Federal Reserve, diminishing market liquidity and causing potential pullbacks in cryptocurrency values. Conversely, results matching or falling below predictions may embolden investors to increase their cryptocurrency holdings, causing Bitcoin and altcoins to surge.
Could Tariffs and Legislative Discussions Affect Crypto?
In a bold move, President Trump announced a 30% tariff on goods from the European Union and Mexico, citing reasons related to trade imbalances and drug trafficking. The announcement, which came after stock market closure, might result in volatility once markets reopen. Market analysts suggest that a withdrawal from stocks could drive temporary cryptocurrency surges, yet corrections in both markets remain probable. Additionally, the U.S. Congress will debate bills pertaining to crypto regulations amidst what’s labeled as Cryptocurrency Week.
Key Takeaways for the Upcoming Week
Key points arising from the week’s proceedings include: – A stronger CPI may delay rate cuts, affecting liquidity. – Trump’s tariffs could shift capital from stocks to crypto. – Progress in Congress on crypto-related bills is uncertain.
As stakeholders monitor developments in the political and economic arenas, they recognize that outcomes could significantly steer the cryptocurrency trajectory going forward.
