Global financial markets are gearing up for a critical week as major U.S. economic events take center stage.
With Bitcoin (BTC) reaching a historic $81,000 after Donald Trump’s re-election and the Federal Reserve’s recent rate decision, traders and investors are watching closely for signals that could fuel or derail the crypto rally. Key economic data, including inflation figures and employment reports, will shape market sentiment in the coming days.
CPI and inflation data under scrutiny
The release of the U.S. Consumer Price Index (CPI) for October, scheduled for November 13, is expected to set the tone for the markets. Analysts anticipate a slight drop in headline inflation by 0.2% and core inflation by 0.3%, signaling a continued cooldown in price pressures. This follows last month’s CPI reading of 2.4%, which marked a decline from prior highs. However, an unexpected increase in CPI could indicate persistent inflation, potentially halting the Federal Reserve’s current approach to rate cuts.
Additionally, initial jobless claims data will be released on November 14. The labor market remains under scrutiny, with claims ticking up to 221,000 last week. More claims could signal economic instability, raising concerns about a potential recession. Meanwhile, lower claims could point to sustained economic resilience. On November 15, the Producer Price Index (PPI) report is expected to offer further insight into production costs. A spike in PPI may drive up energy and hardware expenses for Bitcoin mining, which could weigh on the cryptocurrency market.
Retail and employment data to impact sentiment
Retail sales data, also expected on November 15, will provide a clearer picture of consumer spending trends. Analysts forecast a modest 0.3% rise for October, suggesting steady consumer demand. Strong retail figures signal economic stability likely to bolster investor confidence.
The Federal Reserve’s interest rate strategy will also be in focus as Chair Jerome Powell prepares to speak on November 13. Investors seek clues about how the central bank may respond to evolving inflation and employment trends. With inflation easing but the labor market showing some weakness, Powell’s remarks could carry significant weight for financial markets, including cryptocurrency.
Bitcoin futures and market sentiment
Bitcoin’s price has surged 18% over the past week, driven by optimism surrounding pro-crypto election victories in the United States. The cryptocurrency is trading at an average price of $81,159, with its 24-hour trading volume jumping 65% to $77.9 billion. The Fear and Greed Index indicates extreme market optimism, registering 76 points.
Open interest in Bitcoin futures has soared, with Deribit recording over $2.8 billion in activity. CME futures premiums for BTC and ETH have also doubled since the election, signaling strong demand for call options and reflecting a bullish market outlook. As the global crypto market cap climbs to $2.76 trillion, traders remain focused on macroeconomic factors that could influence Bitcoin’s next move