Bitcoin BTC

Big Week For Crypto Markets: US Inflation Data To Shape Market Sentiment

The crypto market, Bitcoin and Ethereum outlook this week. CPI Inflation report could reduce 2025 Fed rate cut expectations

By Akriti Seth

Last Updated: Jan 13, 2025

Fact checked

By Sam Cooling

rrypto: Bitcoin Hits Record $106K as Trump Teases U.S. Bitcoin Strategic Reserve Plan

The crypto market is bracing for a pivotal week as key US inflation data, including the Consumer Price Index (CPI) and Producer Price Index (PPI), are set to be released. 

These reports, coupled with other significant economic indicators, are expected to influence Federal Reserve monetary policy decisions and, by extension, the trajectory of Bitcoin. 

Big media predicts CPI Inflation report could reduce 2025 Fed rate cut expectations.

Explore: Saylor Targets Another Bitcoin Buy: Will Bitcoin Bounce and When Is Altcoin Season?

Inflation Data In Focus: CPI and PPI Reports 

This week’s economic calendar is packed with critical data releases that could shape market dynamics for both traditional and digital assets. 

14 January 2025, Tuesday: December PPI Data

The Producer Price Index measures input costs for producers and manufacturers, offering insights into inflationary pressures at the production level. A higher-than-expected PPI could signal rising costs that may eventually be passed on to consumers, intensifying inflation concerns.  

15 January 2025, Wednesday: December CPI Data

The Consumer Price Index is a key indicator of consumer-level inflation and is closely watched by policymakers and markets alike. Core CPI data, which excludes volatile food and energy prices, will be particularly scrutinized for signs of persistent inflationary trends.  

16 January 2025, Thursday: December Retail Sales Report

Retail sales data will provide a snapshot of consumer spending behavior during the holiday season. Strong retail sales could indicate robust economic activity but may also reinforce inflationary pressures.  

16 January 2025, Thursday: Philadelphia Fed Manufacturing Index 

This index gauges manufacturing activity in the Philadelphia region and serves as a leading indicator for broader economic trends.  

17 January 2025, Friday: December Housing Starts Data

Housing starts data will shed light on construction activity—a sector often sensitive to interest rate changes.  

Additionally, seven Federal Reserve officials are scheduled to speak this week, offering potential clues about the central bank’s policy outlook ahead of its 29 January 2025 meeting. Let’s see how all of this can impact crypto. 

Crypto Update: Bitcoin And Ethereum Outlook

Bitcoin’s current price action suggests it is struggling to maintain support levels above $94,000 amid broader market weakness.

On the upside, reclaiming $96,000 would be an encouraging sign for bulls aiming for new all-time highs later this year.  

Conversely, any recovery above $96,000 and $100,000 may offer a perfect launch pad for prices to rally above $108,000 in a buy-trend continuation pattern.

This uptick would provide major tailwinds for altcoins for Ethereum, Solana, Dogecoin, and even Tron. When writing, they are down, on average, 15% over the last trading week.

Ethereum faces similar challenges around the $3,200 mark after an 11% weekly drop. However, a recovery above $3,300 might signal renewed investor confidence in Ethereum’s long-term prospects—particularly given its ongoing role as a backbone for decentralized finance (DeFi) and non-fungible token (NFT) ecosystems.  

Explore: Best Crypto to Buy In The Dip: These Coins Could Unlock Life-Changing Gains

Disclaimer Icon
Disclaimer
Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
99Bitcoins may receive advertising commissions for visits to a suggested operator through our affiliate links, at no added cost to you. All our recommendations follow a thorough review process.

Free Bitcoin Crash Course

  • Enjoyed by over 100,000 students.
  • One email a day, 7 days in a row.
  • Short and educational, guaranteed!

Why you can trust 99Bitcoins

10+ Years

Established in 2013, 99Bitcoin’s team members have been crypto experts since Bitcoin’s Early days.

90hr+

Weekly Research

100k+

Monthly readers

50+

Expert contributors

2000+

Crypto Projects Reviewed

Google News Icon
Follow 99Bitcoins on your Google News Feed
Get the latest updates, trends, and insights delivered straight to your fingertips. Subscribe now!
Subscribe now
Akriti Seth
Akriti Seth
Editor

Akriti Seth is a Zurich-based Business Journalist and Crypto Editor. Her passion for journalism has taken her across the globe – from thriving as an on-television correspondent to writing engaging articles, she has worked for companies like Informa UK, Bloomberg... Read More

Back to top