Bitcoin Price at Risk as US Economic Events Loom Ahead of FOMC Meeting
Bitcoin's stability at around $80,000 over the weekend is about to be put to the test as several major US economic events unfold in the coming days.
The week ahead of the Federal Reserve's (FOMC) September 15-16 meeting is crucial for determining the central bank's next move, which could impact Bitcoin's price. The strong US jobs report from last Friday and Fed Chair Kevin Warsh's hawkish speech at the end of August have already led to a significant increase in expectations for an upcoming rate hike.
On Thursday, the release of August Producer Price Index (PPI) data will be closely watched, with economists expecting headline PPI to rise 0.4% month-over-month and annual producer inflation to accelerate from 4.7% to 5.4%. A hotter reading could reinforce expectations that inflationary pressure is rebuilding.
Friday's Consumer Price Index (CPI) report will be even more important, with estimates pointing to inflation remaining at around 3.3%-3.4% annually and core CPI easing from July's 2.5%. The actual results could have a significant impact on Fed rate-hike expectations and, subsequently, Bitcoin's price.
A higher-than-expected CPI reading would strengthen the argument for another rate increase and could pressure Bitcoin while pushing Treasury yields higher.