Amid ongoing market rally, the crypto market is preparing for the potential impact of US PCE inflation, FOMC minutes, Q3 GDP data, and crypto expiry.
The crypto market is now entering a critical week, marked by many significant events, including the US PCE inflation, FOMC Minutes, and Q3 GDP (first revision) data, among others.
Furthermore, crypto market participants have expressed apprehension regarding the expiration of the crypto market. To provide context, the investors are anticipating the effects of these events, as the broader market has experienced a significant increase in recent days.
US PCE inflation rate & FOMC minutes are crypto market focus
The crypto market is anticipating significant economic events this week, such as the US PCE and FOMC, which are expected to impact asset prices significantly. Speculation regarding the potential impact is running high.
It is important to note that the week will commence on Tuesday, November 26, with the release of the US FOMC’s November report and consumer confidence data. This would offer additional indications regarding the Federal Reserve‘s prospective stance regarding their monetary policy plans, which typically influence investors’ sentiment.
Furthermore, the minutes will be closely monitored, as recent reports indicate that the US Federal Reserve has stated that it will not emphasize the 2% inflation target shortly.
In addition, investors will closely monitor the central bank’s minutes this week due to Donald Trump’s election victory and Elon Musk’s emphasis on reducing Federal expenditure.
Subsequently, market participants will anticipate the third-quarter GDP figures for the United States. The initial revision of the economic figure is scheduled for Wednesday, November 27, and it will offer insights into the current state of the US economy. The sentiment of the broader financial sector, let alone the crypto market, is also expected to be influenced by this.
In the interim, investors will closely monitor inflation figures, particularly in light of recent data suggesting that prices are on the rise. In October, the US PCE inflation is anticipated to remain at 0.2%, consistent with the previous month’s figure, and is scheduled for release on Wednesday. However, the YoY PCE figure is anticipated to increase by 2.3%, which is higher than the 2.1% observed in the previous month.
In addition, the Core PCE inflation figures, which exclude energy and food prices, are anticipated to exhibit a 2.8% increase from the 2.7% observed in September. Nevertheless, the monthly figure is expected to remain at 0.3%.
Will the ongoing rally be affected by crypto expiry?
Bitcoin and other prominent altcoins have recently experienced substantial rallies as the market remains optimistic after Donald Trump’s election victory. Nevertheless, confident market analysts predict that the forthcoming crypto expiration will affect market sentiment.
Deribit data indicates that $9.13 billion in Bitcoin options will expire on November 29, with a put/call ratio 0.80. The maximum cost of suffering is $77,000. However, Ethereum, valued at $1.24 billion, is also scheduled to expire on the same date. Its maximum agony price is $2,800, with a put/call ratio 0.77.
The market is expected to experience volatility due to this crypto expiry, which is valued at over $10 billion and will affect investors’ sentiments. In addition, numerous prominent experts, such as Peter Brandt, suggest that a potential Bitcoin selloff is imminent despite their continued optimism regarding the cryptocurrency’s long-term trajectory.
Nevertheless, the market will closely monitor the US PCE inflation figures, FOMC minutes, and other macroeconomic events. Furthermore, the ongoing crypto market rally is anticipated to impact traders’ sentiments, particularly in light of the upcoming crypto expiration.
