Which Are the Most Important Events that Will Influence the Price of Bitcoin and Co. This Week

The thriller surrounding the insolvency of the crypto exchange FTX led to great uncertainty among investors in the last trading week and pushed the cryptocurrency Bitcoin (BTC) to a new low for the year. Significantly declining U.S. inflation rates, on the other hand, ensured the strongest price increase in the Nasdaq technology index since April 2020 in the second half of the week on the traditional financial market.

The crypto market was also able to benefit from this bullish recovery movement and at least partially cushion the price declines in the crypto market. However, the price recovery in Bitcoin and Co. lasted only briefly. Over the weekend, the BTC price slid again towards its low for the year – rumors of further irregularities in the liquidity of other central crypto exchanges caused investors to increasingly transfer their coin holdings to external crypto wallets such as Metamask and Trustwallet. The loss of confidence seems stronger than ever after FTX’s bankruptcy. This trading week is thus not under a bullish star and is likely to lead to increased volatility in the crypto market once again.

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China’s industrial production and US producer prices in focus

Tuesday, November 15th, 2022: Investors are looking first to the Far East this week. In the Middle Kingdom, new figures on industrial production in the People’s Republic of China will be published in the early morning hours (03:00 CET). After a strong increase against expectations to 6.3 percent in the previous month, market analysts expect a slight decline to 5.2 percentage points for the past month of October. Industrial production measures the change in industrial output of producers, mines, and utilities. The manufacturing industry in China is considered extremely sensitive due to the rigid 0-covid strategy.

If, contrary to expectations, economic activity picks up, industrial production is also likely to increase. If, on the other hand, China’s economy weakens again, production output usually also declines. Problems in China usually also have an impact on the rest of the world, which is likely to have an impact on Western economic output. Thus, the US dollar could initiate a bullish countermovement after a significant price correction in the previous week, which should further increase price pressure on Bitcoin and the Altcoin sector.

At 14:30 (CET), new U.S. producer prices (PPI) for the past October will follow. Market experts’ forecasts predict an increase from the previous month of September from 0.4 percent to 0.5 percent. If there are no price increases, and the EPI similar to the consumer price index (CPI) last Thursday even declined, this should further fuel the price increase on the stock markets and push the U.S. dollar in value. Optimally, this also takes some selling pressure from the crypto market.

If, on the other hand, the producer price index is above analysts’ expectations, this should result in a bullish performance of the US dollar against the euro. A renewed dollar strength could lead to increased selling pressure on the US stock market and crypto market, as in recent months.

EU consumer prices in focus

Thursday, November 17th, 2022: At 11:00 a.m. (CET), market experts will focus on the updated consumer price index (CPI) for the euro area for the past month of October. The inflation rate is expected to remain unchanged at 10.7 percent. If the inflation rate turns out to be lower than expected by market observers, this would be positive for the stock markets and the crypto market, similar to the U.S. consumer prices in the previous week, as the interest rate pressure on the ECB, similar to the U.S., should decrease at least in the short term.

If, on the other hand, the consumer price index is once again above market forecasts, the European monetary guardians would have to stick to their plan of a further, significant interest rate hike. As a result, we would again have to plan for declining stock and crypto prices.

Existing home sales figures in the U.S. at the end of the week

Friday, November 18: At 16:00 (CET), new sales figures for existing homes for the past month of October will be presented. The data, collected monthly by the Association of U.S. Realtors, reflect the current level of consumption of citizens. Higher-than-forecast sales figures indicate rising consumer spending in the US. However, if existing home sales come in below the 4.39 million expected by market analysts, the recent positive trend would reverse once again, indicating renewed consumer restraint. As recently as the previous month, 4.71 million existing homes changed hands. Weak sales figures tend to have a negative statistical impact on the strength of the US dollar.

As has been the case recently, negative market data could have a positive impact on prices in the stock and crypto markets in the current situation, as the Fed will want to prevent a total crash of the important real estate market.

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(Featured image by Kanchanara via Unsplash)

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First published in BTC-ECHO, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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