Key events for Bitcoin, Ripple and Ethereum this week

This week, U.S. consumer and producer prices will have a major impact on the price of Bitcoin (BTC) and other cryptocurrencies.

In this article you will learn:

• What economic data may affect rates this week.

• Why U.S. inflation data could cause volatility in markets.

• How the University of Michigan consumer poll is a gauge of sentiment in America.

At the beginning of the week, weak manufacturing data led to declines in the U.S. financial market and the crypto market. By the end of the week, prices recovered thanks to strong labor market data. Bitcoin achieved a recovery to $62,978, but still stood 5 percent lower than last week. Other major cryptocurrencies such as Ripple (XRP), Ethereum (ETH), and Solana (SOL) also saw declines, partly due to the strong U.S. dollar.

In the coming days, the price of Bitcoin, Ethereum, Ripple and Solana will depend mainly on the latest U.S. inflation data.

Important economic dates this week

This second week of October is dominated by the latest U.S. inflation figures. On Wednesday, the Federal Reserve publishes the minutes of their latest interest rate meeting, and consumer price indices follow on Thursday. On Friday, producer price indices and the University of Michigan consumer survey will be released.

U.S. central bank interest rate meeting on Wednesday night

On Wednesday, Oct. 9, 2024 at 8 p.m., the U.S. Federal Reserve (Fed) will publish the minutes of its latest interest rate meeting, held on Sept. 18. During that meeting, the Fed cut interest rates by 50 basis points, bringing the current interest rate to 5.0 percent. This rate cut was made to support the weakened U.S. economy, especially as inflation fell to 2.5 percent.

Investors now look forward to new clues about the future of U.S. monetary policy. Fed Chairman Jerome Powell emphasized at the previous press conference that another rate cut is likely in November, provided inflation and labor market data provide sufficient room. According to a recent poll, about 96 percent of market participants expect a further 25 basis point interest rate cut on Nov. 7.

However, the Fed's report may cause surprises. If unexpected information is shared, it could lead to increased volatility in financial markets. This could be especially important for risky investments, such as cryptocurrencies. For example, a clear signal of further monetary policy easing could support the crypto market, while unexpected statements could cause fluctuations.

Thursday: consumer prices

Thursday, Oct. 10, at 2:30 p.m., the consumer price index figures for September will be released. Inflation is expected to have fallen further to 2.3 percent. If this is the case, it could positively affect markets, while higher inflation could cause turmoil.

Friday: consumer confidence from the University of Michigan

On Friday, October 11, 2024, the University of Michigan will present preliminary estimates of US consumer confidence and household prediction for October at 16:00 (CET). The latest final figures for September showed consumer confidence at 70.1, which was higher than the forecast of 69.0. For October, analysts expect a slight increase to 70.2, the highest level since April this year.

Should this forecast be lower than expected, it may indicate that the U.S. economy, which relies heavily on domestic demand, is weakening further. On the other hand, if the numbers are above prediction, it could indicate that U.S. household confidence continues to pick up. This could have a positive effect on the stock and crypto markets, with recent price gains possibly continuing.