• Multiple US economic data releases this week could affect crypto portfolios, with potential volatility following last week’s CPI data.
• Key events include the Federal Reserve’s January FOMC minutes, initial jobless claims, and consumer sentiment index, all impacting market sentiment.
• Market closures for President’s Day will pause traditional trading, but Bitcoin remains available for trading throughout.
  

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Crypto market participants, including traders and investors, should brace for multiple US economic data this week, which could affect their portfolios. Key events this week could drive volatility after the US CPI (consumer price data) last week. Meanwhile, Monday’s US President’s Day will keep markets closed, but Bitcoin will be available for trading throughout.

JANUARY FOMC MINUTES

The Federal Reserve (Fed) will release minutes from January’s FOMC (Federal Open Market Committee) meeting on Wednesday, February 19. This week, one of the key US economic reports will be released. What policymakers say may help the markets better understand the Fed’s interest rate plans.

Recent reports showed that CPI inflation increased month over month. This is bad news for the short term, leading to negative feelings in the crypto markets. However, there are no strong signs that inflation is speeding up again.

Jerome Powell, the chair of the Fed, informed a Senate Banking Committee that he is not rushing to lower interest rates. President Donald Trump urged for larger cuts to address high inflation, but Powell remained steadfast.

Market players are preparing for more changes as they look for new policy updates. The January FOMC minutes might shed light on this issue, particularly about whether rate cuts are on the way or if officials are signaling a more aggressive stance.

INITIAL JOBLESS CLAIMS

The crypto market will pay attention to the initial jobless claims on Thursday, in addition to the January FOMC minutes. This data will give a glimpse into the US labor market. For the week ending February 15, there were 213,000 new unemployment insurance applications filed by US citizens.

This report fell short of early predictions and was below last week’s adjusted figure of 220,000. The US Department of Labor (DoL) noted a seasonally adjusted insured unemployment rate of 1.2%. MarketWatch data indicates a median expectation of 215,000 for this week’s initial jobless claims.

Higher jobless claims reported on Thursday indicate growing economic difficulties and a declining job market, which may result in lower consumer spending. This slowdown has led the Fed to think about cutting interest rates to boost the economy.

CONSUMER SENTIMENT

The preliminary report of the US Consumer Sentiment Index shows how confident and positive consumers feel about the economy. The University of Michigan will publish this information on Friday. A good report on Friday may boost confidence in financial markets, including cryptocurrencies. This could lead to more interest in Bitcoin as investors look for assets that can grow.

[Crypto Economy]