Cryptocurrency The market was up for most of the month of January. Although there are many different reasons for this rise, the rise continued in February.
The cryptocurrency market is trading with single-digit losses in February for a variety of reasons. Let’s compile the top five reasons to watch investments this week, including the CPI, which is waiting.
CPI Data Waiting
The release of the Consumer Price Index (CPI) data results in a backlash in the cryptocurrency market. The next CPI data is scheduled to be released on February 14. Previous data showing a sharp drop in inflation make it clear that macroeconomic data will likely show a decline in inflation.
It is still a matter of debate whether the expected CPI data will put the market in an uptrend or a downtrend. However, many analysts believe both outcomes are possible. On the other hand, the cryptocurrency community remains cautious.
S&P 500 and Other Data Drops
Koinfinans.com As we reported, the S&P 500 is down 1.11% this week, while the Dow Jones is down 0.17%. Nasdaq data also closed the week with a similar outlook. More than 69% of companies listed on the S&P 500 exceeded their profit forecasts for this quarter, according to Refiniv data.
On the other hand, the head of the Bank of Japan is also changing. Authorities appointed Kazuo Ueda as chairman. With the announcement, the Japanese Yen appreciated. The policies of the Bank of Japan are closely followed by global markets.
UK Inflation Data
The Bank of England is likely to remain in a prolonged recession after months of rising inflation. UK inflation figures will help the bank determine whether there will be an increase in interest rates.
Earlier, the bank signaled that the 50 basis point rate hike in February could be the last of its stringent measures to contain inflation. In Tuesday’s report, wage growth is also expected to accelerate.
Developments in the Euro Area
The European Commission will release quarterly economic forecasts for the euro area on Wednesday, followed by revised GDP data.
European Central Bank President Christine Lagarde will also testify before the European Parliament on the bank’s annual report. All of these scenarios mentioned above may have additive effects on the performance of the market.