The market, which was bullish in January, was greatly affected for various reasons. Of course, the nature of the market is greatly dependent on different variables.
The cryptocurrency market has been trading in the red with single-digit losses in February due to various reasons. Let us look at five of the most important reasons, including the pending CPI, to watch your investments this week.
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Pending CPI data
The Consumer Price Index (CPI) data release has historically sparked reactions in the cryptocurrency market. The next CPI data release is scheduled for Feb.14. The previous data, which showed a sharp decline in inflation, makes it clear that the macroeconomic data will likely show a drop in inflation.
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Whether the eagerly anticipated CPI data will send the market into a bullish or bearish trend is a matter of debate. Nevertheless, a small number of analysts foresee both outcomes. The cryptocurrency community is currently characterized by a sense of caution.
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Drop in earnings
The S&P 500 ended 1.11% lower this week and the Dow Jones by 0.17%. Nasdaq also marked its initial fall last week this year. According to Refiniv data, more than 69% of firms listed on the S&P 500 exceeded their profit estimates for the quarter.
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Bank of Japan
Japan’s government is officially going to replace Haruhiko Kuroda as the official governor of the Bank of Japan with Kazuo Ueda. The value of the yen also spiked following the announcement. The decision by the BOJ on how it will adjust its policy can affect global markets.
Read more: Bitcoin Likely to Bounce Back From $22K Yet CPI Data Looms…
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UK inflation
The Bank of England is likely in a prolonged recession after months of rising inflation. The UK inflation numbers will likely help the bank determine whether there will be a rise in interest rates moving ahead.
The bank also stated earlier that February’s 50-basis-point-rate hike is likely to be the last in its stringent measures to curb inflation. Wage growth is expected to accelerate in the Tuesday report as well.
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Eurozone
The European Commission is likely to release quarterly economic forecasts for the euro region on Wednesday, which will be followed by the revised GDP data.
The European Central Bank President, Christine Lagarde, will also testify before the European Parliament about the bank’s annual report. All these above-mentioned scenarios could have contributing effects on the performance of the market.