This will be important in crypto this week

The Bitcoin price has taken another hit. Profit-taking in the US stock market, fueled by continued strong labor market data combined with a rise in the US dollar index DXY to a new high, also caused further profit-taking in the crypto market. As a result, Bitcoin dropped back to key support at US$92,000, before a slight recovery to US$95,000 over the weekend. Bitcoin closed the week with a price drop of about three percent. The altcoin market also showed weakness, continuing its decline southward over the past seven trading days. Which economic data will be in investors' spotlight in the coming days is revealed in this overview.

Key economic data of the week
The third trading week in January is dominated by inflation data from the U.S. and Europe. It kicks off with U.S. producer prices on the coming Tuesday. Mid-week will be followed by the latest CPI consumer price data from the US. Then in the second half of the week on Thursday, the latest U.S. retail sales are released. At the end of the week on Friday, the latest inflation data from Europe for the month of December will be released. As in the previous week, market participants will again listen to the statements of a total of seven U.S. central bankers during their speeches during the week.

U.S. producer prices at the beginning of the week
Tuesday, Jan. 14, 2025: At 2:30 p.m. (CET), the latest U.S. producer price indices (PPI) for the past December will be presented. At 3.0 percent, the latest producer prices were recently significantly above the forecast of 2.6 percent, marking the third consecutive month above analysts' prediction. Since September, producer prices are thus up 1.3 percent year-on-year.

U.S. consumer prices mid-week
Wednesday, Jan. 15, 2025: At 2:30 p.m., the U.S. Bureau of Labor Statistics releases the latest consumer price data for the month of December. In November, although consumer prices were within prediction, they, like producer prices, rose further north, most recently to 2.7 percent. For the past month, analysts are counting on another increase to 2.9. Undercutting this forecast would give the U.S. central bank more room for future interest rate adjustments. A recovery rally, especially of risky assets such as the crypto sector, would follow.

U.S. retail sales on Thursday
Thursday, Jan. 16, 2025: At 2:30 p.m. (CET), the U.S. Census Bureau publishes final U.S. retail sales for the previous month. Retail sales are considered an important measure of the spending behavior of U.S. private households. In the previous month, retail sales in the monthly comparison at +0.7 percent were the sixth month in a row above analysts' prediction of last +0.6 percent. For December, however, analysts are counting on a slight decline to +0.6 percent in the monthly comparison. If retail sales again beat the forecast, a bullish market reaction can be expected. Rising U.S. consumption would predominantly cause a falling U.S. dollar index (DXY) in the aftermath, which could serve as a tailwind for Bitcoin prices and altcoins in particular.

European inflation figures at the end of the week
Friday, Jan. 17, 2025: At 11:00 a.m. (CET), Eurostat publishes final data for consumer prices in Europe for the month of December. Compared to the previous month, analysts count on no change and a stable annual inflation rate of 2.4 percent. As in the U.S., consumer prices in the euro zone have thus steadily increased again and are currently 0.7 percentage points above the September low. If forecasts for December are significantly exceeded as recently and the inflation ratio is above the estimate, this would significantly limit the room for European central bankers around Ms. Lagarde. The decreasing likelihood of further interest rate cuts in the upcoming ECB decisions could have a negative impact on the stock and crypto markets in an initial reaction.