The week starts with a busy economic schedule, and the early trading session indicates a decline in the cryptocurrency markets. The Federal Reserve’s policy meeting, along with the release of core CPI statistics, is a critical event on the horizon. As a result, it is essential to determine the impact of this week’s economic events on the Bitcoin trajectory.

The Kobeissi Letter, a well-known macroeconomics publication, examines the crucial events influencing the financial market and offers insights into the significant economic milestones for the United States beginning on December 11. Notably, Bitcoin has already started a sharp decline, raising questions about the extent of the market correction.

The Economic Calendar for Bitcoin

The Impact of This Week's Economic Events on the Bitcoin Trajectory

Looking at the economic calendar, December 12 is vital since it is when reports on November’s CPI figures are released. These reports measure changes in retail prices of goods and services, a significant tool for evaluating inflation. Forecasts indicate that the Core CPI is expected to remain stable at 4% year over year. The US annual inflation rate fell to 3.2% in October and is predicted to continue through November.

The Bureau of Labor Statistics releases the November Producer Price Index (PPI) report midweek, which is a crucial dataset that shows input prices for manufacturers and producers. The PPI is a valuable indicator of impending inflationary pressures because it influences retail prices.

The Federal Reserve’s policy meeting, which takes place simultaneously on Wednesday, promises to shed light on the central bank’s viewpoint on interest rates. The simultaneous release of the Fed’s quarterly economic predictions summary, which thoroughly assesses the economy’s state, highlights the meeting’s importance even more. The complex interactions between economic events throughout the week will surely influence market sentiment and movements.

More Information from the Kobeissi Letter on the Bitcoin Trajectory

The Impact of This Week's Economic Events on the Bitcoin Trajectory

Concerning the federal funds rate in the short, medium, and long run, the Federal Reserve’s “Dot Plot” concisely represents its outlook. Insights from the Kobeissi Letter indicate that the Fed’s most recent letter stressed that rate cut expectations are “premature.” The following week is expected to bolster this attitude by clarifying the central bank’s view.

Speaking of economic indicators, the events on Thursday’s schedule, keenly watched for their effects on the economy and labor market dynamics, include the release of retail sales data and the first round of unemployment claims.

The Monday morning Asian trading session is starting negatively for the cryptocurrency market. The market capitalization drops by $80 billion, or 4%, daily. Leading the way in these losses is Bitcoin, which fell 3.2% and closed at $42,377 at the time of publication.

Before this, analysts had predicted a correction in the cryptocurrency market, explaining it as a reaction to the alleged frothiness that had recently engulfed the sector. This correction is taking effect at the beginning of the workweek.

Finally, as Bitcoin swiftly withdraws, it aligns with a packed economic agenda featuring crucial events such as the Federal Reserve’s policy meeting and the unveiling of core CPI data.