Key Economic Events Impacting Crypto Market This Week: CPI Report, ETF Decision & More

As the new weeks begin, the United States Economic Calendar is brimming with crucial events that will once again put inflation in the spotlight. The Consumer Price Index (CPI) report, scheduled for Thursday, is highly anticipated as it will determine whether inflation continues its downward trend or stalls near 3%. 

This news article will provide an in-depth analysis of the upcoming economic events, their potential impact on the US markets, and how they will affect various sectors including the cryptocurrency space and Banks.

Impact of CPI Report

The CPI report is of utmost importance as it will help markets assess the Federal Reserve’s policies and its efforts to bring down interest rates. The has predicted a 0.2% increase in consumer price in December, which would stop some of the recent progress on inflation as the annual price increase could tick up to 3.3% and 3.1%. This could have a knock-on effect on the Federal Reserve’s policies and its efforts to bring down interest rates.

Monthly Budget Deficit

In the upcoming announcement of the monthly budget shortfall on December 11, analysts predict a staggering figure of $62.5 billion, contributing to the already record-breaking national debt of $34 trillion. This trend has raised concerns among economists and financial experts about its potential impact on the economy and financial markets. High levels of debt could lead to higher interest rates and inflationary pressures, potentially causing a slowdown in economic growth, making it more expensive for individuals and businesses to borrow money, and eroding the purchasing power of consumers. 

ARK 21Shares spot Bitcoin ETF

The Securities and Exchange Commission’s decision on Wednesday, December 10, regarding the ARK 21Shares spot Bitcoin ETF is highly anticipated. Analysts are confident that the regulator will approve all applications simultaneously to prevent a first-mover advantage. However, a denial could result in a larger dump in the crypto market, while an approval could initially lead to a spike in prices.

Bank Earnings Calls

A busy stretch of bank earnings calls is scheduled for Friday, December 12. Banks such as Wells Fargo, Bank of America, BlackRock, BNY Mellon, Citigroup, and JPMorgan Chase will release their quarterly reports during this time. These events are unlikely to significantly impact crypto markets unless there is an SEC denial that results in a larger dump. However, they could provide insights into the health of the banking sector and potential future trends.

Much Awaited Bitcoin ETF Approval

The Securities and Exchange Commission has declined many ETF applications till now and this year, 2024. It started with a lot of hope from investors, and its major reason is the spike in the value of Bitcoin, which is currently trading at $43,643. Many known personalities in the crypto space have predicted ETF approval, as expected on January 11. The approval effect will have a lot of beneficial impacts on the crypto market, and the decline will also have its losses.

key economic events in the US this week include the release of the CPI report, the announcement of the monthly budget deficit, the SEC decision on the ARK 21Shares spot Bitcoin ETF, and bank earnings calls. These events could impact inflation, interest rates, financial policies, crypto markets, and the health of the banking sector.