This week, several key U.S. economic events are expected to have a major impact on the cryptocurrency market, particularly on Bitcoin (BTC) and Ethereum (ETH). The Federal Reserve's interest rate decision, anticipated to maintain rates between 4.25% and 4.5%, comes amid continued inflationary pressures and political calls for potential rate cuts. Market watchers are also awaiting the Initial Jobless Claims report, which could signal overall economic strength. Lower-than-expected claims are generally interpreted as bullish for risk assets such as Bitcoin.
In addition, Ethereum will roll out its Pectra upgrade, introducing 11 enhancements focused on improving wallet usability and raising the maximum staking limit per node substantially. Historically, similar Ethereum network upgrades have influenced positive price action in the short term.
Upcoming releases of U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) data will provide further clues on inflation trends and the possible future direction of Federal Reserve policy. Previous reports of slight decreases in these indicators have coincided with Bitcoin price increases. As of the time of writing, Bitcoin trades at around $94,450.38, showing a 0.38% uptick in the past 24 hours amidst heightened investor caution and volatility ahead of these significant events.