Crypto Prices Could Explode on US Economic Data Release Wednesday17. Januar 2023
• The US economic data expected this Wednesday could fuel an explosive rally for bitcoin and other cryptos.
• The most important data to watch is the Producer Price Index (PPI), which is expected to come in at -0.1.
• Crypto trader and economist Alex Krüger has already predicted a return to lower inflation over the long-term due to technology and an ageing population.
Investors in the cryptocurrency markets are eagerly awaiting the release of US economic data this week, as it could have a major impact on crypto prices. The most important data to watch for is the Producer Price Index (PPI), which is expected to come in at -0.1. A reading lower than that could lead to a major rally for all major crypto assets.
Cryptocurrency prices have been on the rise recently, with Bitcoin (BTC) leading the charge. Last week saw a strong surge in the price of BTC and many other popular coins, and traders are now looking for clues of what could fuel the next leg higher. With the US economic data set for release on Wednesday, many believe that the trigger could come sooner rather than later.
The PPI measures the change in prices paid to producers of goods in the US, and is a good indicator of inflation. Earlier this month, the Consumer Price Index (CPI) showed that US inflation had fallen to 6.5% annually, down from 7.1% in November, so the PPI numbers could provide further evidence of a move to lower inflation.
Popular crypto trader and economist Alex Krüger has already predicted a return to lower inflation over the long-term due to technology and an ageing population. “It should be crystal clear bots will make wage inflation evaporate,” he said on Twitter.
If the PPI comes in lower than expected, then it could be the catalyst for a major rally in the crypto markets. Investors have already been betting big on Bitcoin and other digital assets, and a positive reading on the PPI could see prices surge to all-time highs.
However, if the PPI comes in higher than expected, then it could lead to a pullback in prices. Crypto investors will be watching the data release this Wednesday very closely, as the outcome could have a significant impact on the markets.