US PCE, FOMC Minutes, & Crypto Expiry In Focus, Brace For Market Impact

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As a seasoned crypto investor with a knack for navigating market turbulence and economic indicators alike, I find myself bracing for an intriguing week ahead. The upcoming US PCE inflation and FOMC minutes are undeniably critical events that could sway asset prices significantly. Having weathered the storms of 2017’s ICO mania and 2018’s bear market, I am well-versed in the art of reading between the lines of central bank communications.

This week is a critical one for the cryptocurrency market, as it’s packed with significant happenings such as the US Personal Consumption Expenditures (PCE) inflation report, the Federal Open Market Committee (FOMC) meeting minutes, and the first revision of Q3 GDP data. Moreover, the approaching crypto market expiry has sparked apprehension among investors. Essentially, they are eager to see how these events will affect the market, given that it has experienced a substantial surge in recent times.

US PCE Inflation & FOMC Minutes In Focus

This week’s crypto market is bracing itself for several significant economic events, such as the US PCE, FOMC meeting, and others. The anticipation about these events is growing, with many wondering how they might influence asset values. Notably, the week kicks off on Tuesday, November 26, with Consumer Confidence data and the US FOMC for November. These events will offer additional insights into the Federal Reserve’s potential approach to their monetary policy, which can significantly impact investor sentiment.

Furthermore, the minutes released by the US Federal Reserve this week are expected to receive intense scrutiny, as recent reports indicate that the Fed has decided to no longer prioritize a 2% inflation target. Additionally, with Donald Trump’s election and Elon Musk’s emphasis on reducing federal spending, investors will closely monitor the central bank’s meeting minutes for any insights or changes in policy.

Afterward, market players will be keeping an eye out for the third-quarter U.S. GDP figures. On Wednesday, November 27, there’s a scheduled first revision of this economic figure, which will offer insights into the health of the U.S. economy. This information is also expected to influence the overall mood in the financial sector, and even more so, the crypto market.

Investors will keep a close eye on the upcoming inflation data, particularly since recent numbers suggest prices are rapidly increasing. Specifically, the US Personal Consumption Expenditures (PCE) inflation rate, scheduled for release on Wednesday, is projected to remain steady at 0.2% in October, identical to the figure from September. However, it’s anticipated that the Year-over-Year (YoY) PCE figure will pick up speed, forecasted to reach 2.3%, compared to the previous month’s 2.1%.

Furthermore, it’s predicted that the Core Personal Consumption Expenditures (PCE) inflation figures, which don’t include energy and food costs, will rise by 2.8%, compared to the previously reported 2.7% in September. However, the month-to-month figure is expected to stay constant at 0.3%.

Will Crypto Expiry Impact The Ongoing Rally?

In recent times, Bitcoin and leading alternative cryptocurrencies have experienced strong surges. Market enthusiasm remains high following Donald Trump’s election victory. Yet, certain financial analysts predict that the approaching expiration of crypto assets could influence market psychology.

Based on Deribit statistics, approximately $9.13 billion worth of Bitcoin options are due to expire on November 29, with a put-to-call ratio of 0.80 and a projected maximum “pain” price of around $77,000. Similarly, around $1.24 billion in Ethereum options will also expire on that date, featuring a put-to-call ratio of 0.77 and a potential maximum payout of about $2,800.

The impending expiration of this cryptocurrency, valued over $10 billion, might ignite market turbulence, influencing investors’ sentiments. Furthermore, prominent analysts such as Peter Brandt suggest a possible Bitcoin selloff may occur, although they remain bullish about the digital currency’s future course.

To put it simply, we’ll be closely watching key economic indicators like U.S. Personal Consumption Expenditures (PCE) inflation figures, FOMC meeting minutes, and other significant macroeconomic events. Moreover, upcoming crypto expiry dates could influence traders’ attitudes, particularly during this ongoing market uptrend.

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2024-11-24 05:34