This Week’s Economic Calendar
This week, the United States has a busy economic calendar with several key reports. On Monday, Tuesday, and Wednesday, reports on consumer credit, trade deficit, and wholesale inventories will be released, although they are not expected to have a significant impact.
However, Thursday’s highlight is the publication of the December consumer price index (CPI) report. This report is crucial for assessing whether inflation continues to decline or stabilizes around 3%. It is forecasted that the CPI will rise by 0.2% in December, potentially pushing the annual increase in prices from 3.1% to 3.3%.
This could impact the Federal Reserve’s policies and its efforts to lower interest rates.
The Monthly Budget Deficit and National Debt
The monthly budget deficit for December will be announced on December 11 and is expected to reach approximately $62.5 billion. Additionally, the US national debt reached a record high of $34 trillion last week and shows no signs of slowing down.
All eyes will be on the Securities and Exchange Commission (SEC) on Wednesday, December 10, as it is the final date for the ARK 21Shares spot Bitcoin ETF decision. Analysts anticipate that the regulator will approve all applications simultaneously to avoid giving any applicants a first-mover advantage.
Bank Earnings Calls
Friday, December 12, will see a series of bank earnings calls where quarterly reports will be released. Wells Fargo, Bank of America, BlackRock, BNY Mellon, Citigroup, and JPMorgan Chase are among the banks in focus for this week.
Crypto Market Weekend Outlook
The economic events scheduled for this week are unlikely to have a significant impact on the crypto markets, except for the SEC’s decision on the Bitcoin ETF. Positive news may initially cause a spike, but if the SEC denies the applications, a larger market decline is expected.
Over the weekend, crypto markets experienced a gradual decline, with the total capitalization dropping to $1.68 trillion. Bitcoin fell by 1.4% to $43,283, while Ethereum retreated 3% to $2,175. Many high-cap altcoins, including Solana, Avalanche, Cardano, Polkadot, and Polygon, also faced heavy losses.
Hot Take: What Lies Ahead for US Economic Reports and Crypto Markets
This week’s US economic reports will provide important insights into inflation trends and their potential impact on interest rates and Federal Reserve policies. The CPI report will be closely watched as it could affect market expectations. Additionally, the bank earnings calls and the SEC’s decision on the Bitcoin ETF will shape investor sentiment.
For crypto markets, volatility may be driven by the SEC’s decision on the ETF applications. Positive news could lead to short-term gains, while denials may result in a significant market downturn. Traders and investors should stay informed about these key events and closely monitor market movements.
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