Crypto Under Pressure? 6 Economic Data to Watch Next Week

Next week, the markets will be buzzing with key economic reports—each one capable of significant disruption!

From inflation numbers to oil market trends and labor data, these updates can change the direction of the crypto markets. With so much on the line, it’s essential to understand how these events could influence the markets.

Read on to uncover the economic data to watch and why it matters for crypto.

Overview of Next Week’s Key Economic Events 

Inflation Data

The Consumer Inflation Expectations for November will be released by the New York Federal Reserve on December 9, 2024. In October, this figure dropped to 2.9%, the lowest level since October 2020, after staying at 3% for over four months. For November, Trading Economics forecasts a slight increase back to 3.0%.

On December 11, the Consumer Price Index (CPI) for November will be released. October’s CPI rose to 315.644, up from 315.3 in September. The forecast for November remains unchanged at 315.3 points.

The Producer Price Index (PPI) for November will be released on December 12. In October, the PPI reached a record high of 145.615, up from 145.329 in September. Experts predict a further increase to 146 points for November.

Higher CPI and PPI numbers could signal persistent inflation, which might prompt the Federal Reserve to raise interest rates. Tighter monetary policies typically reduce liquidity, which can negatively affect cryptocurrency prices.

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Oil Market Trends 

On December 11, OPEC will release its Monthly Oil Market Report, offering insight into global oil market trends. Oil prices have a direct effect on energy costs and investor sentiment, both of which can influence the cryptocurrency market.

If OPEC’s report indicates a bullish oil market, it could lead to higher energy costs, increasing expenses for crypto mining operations and potentially affecting the supply of cryptocurrencies.

Labor Market: Jobless Claims and Economic Sentiment

On December 12, the Initial Jobless Claims data for the first week of December will be released. The previous report showed a rise to 224,000 claims as of November 30, up from 213,000 the week before. For December 7, consensus estimates place the number at 221,000, with some forecasts suggesting it could reach 225,000.

An increase in jobless claims can indicate economic difficulties, potentially leading investors to turn to cryptocurrencies as a safe haven.

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Import and Export Prices: How Trade Affects Crypto

On December 13, the Import and Export Price Indexes for November will be released. In October, the export index increased by 0.8%, exceeding expectations of a 0.1% decline. For November, forecasts range from a 0.3% decrease to a 0.9% increase. Meanwhile, the import index rose by 0.3% in October after a 0.4% decline in September, with November predictions ranging from -0.3% to +0.2%.

Strong export price growth typically signals a healthy economy, which could make cryptocurrencies less attractive as an investment. However, higher import prices could raise inflation concerns, increasing the demand for cryptocurrencies as a hedge.

The crypto market’s response will be closely watched, with each data release adding fuel to an already volatile fire.

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