Inflation Data Looms as Major Risk for Crypto Market This Week
U.S. inflation data could have a significant impact on the crypto market this week, particularly on Bitcoin and altcoins. The Bureau of Labor Statistics will release the August Producer Price Index (PPI) on September 10, followed by the Consumer Price Index (CPI) on September 11. Both reports are scheduled for 8:30 a.m. ET.
Hotter inflation could push Treasury yields and the dollar higher if traders reduce expectations for monetary easing. Higher yields increase the return available from lower-risk assets, while a stronger dollar can tighten financial conditions for assets priced in the U.S. currency. Both developments can pressure Bitcoin and altcoins.
On the other hand, softer inflation could lower yields and weaken the dollar, creating a more favorable environment for risk assets. The initial move may still prove temporary if the data do not materially change the expected path of interest rates.