This week, extremely important events are expected for the cryptocurrency industry:
Publication of the US Consumer Price Index (CPI) and Producer Price Index (PPI)
US Federal Reserve Bank (Fed) interest rate decision, long-awaited release in Ripple v. SEC case,
SEC Response to Coinbase Rulemaking Request
Hearing in US District Court on the SEC's request for a preliminary restraining order against Binance US and more.
Events for Tuesday (June 13)
Tuesday is rich in important events. At 16:30 Moscow time, the US Bureau of Labor Statistics publishes the latest US inflation data for May. Over the past few months, the annual consumer price index (YoY) has shown a sharp downward trend, falling to 4.9% in April.
For May, experts expect a further decline to 4.1%. If analysts' expectations are met or even lowered, the chances of the Fed suspending interest rates will increase. The US financial market can be expected to benefit from lower inflation rates, and the Bitcoin and cryptocurrency markets will also benefit.
However, a lot of attention will also be paid to the core inflation rate and the monthly inflation rate. These numbers have not risen recently as US financial observers expected and have remained at elevated levels.
The consumer price index is expected to rise 0.2% in May after rising 0.4% in April. The core consumer price index is forecast to rise 0.4% in May, up from 0.4% in April. Any positive surprise in these numbers should stimulate financial markets, as well as Bitcoin and cryptocurrency.
There are also various crypto-related events expected on Tuesday that are of utmost importance. The US Securities and Exchange Commission (SEC) is expected to respond to Coinbase's petition for rulemaking by this date.
In addition, a hearing on the SEC's Temporary Restraining Order (TRO) against Binance US will take place at 10:00 p.m. Last week, the SEC asked a federal judge in Washington, D.C., to freeze the assets of Binance's US subsidiary.
Also of paramount importance for the crypto market may be the alleged disclosure of internal SEC Hinman documents in the Ripple case. Hinman's documents may provide insight into the previous classification of Ethereum (ETH) as insecure, which SEC Chairman Gary Gensler is now challenging.
Last but not least, Tuesday also marks the end of the public comment period on the SEC's proposed expanded definition of an exchange. The expanded definition may require a DEX to register as a securities exchange.
No less important events this week
On Wednesday, June 14, the Fed will announce its new interest rate decision at 22:00 Moscow time. Most recently, the Fed and Chairman Jerome Powell stuck to their hawkish rhetoric and raised their key interest rate another 25 basis points to 5.25.
Currently, according to CME's FedWatch tool, only 26% of market participants still expect another 25 basis point rate hike. Given the slow cooling of the US economy and labor market, most expect a pause in the Fed's interest rate hikes.
Both the stock market and the Bitcoin market are likely to react positively if the Fed lives up to these expectations. However, what Fed Chairman Jerome Powell says about the outlook for the future at the subsequent press conference at 10:30 pm Moscow time will also be critical and could greatly affect the cryptocurrency market.
Also on Wednesday, the Producer Price Index (PPI) will be published. As early as 16:30 Moscow time, the producer price index may become another leading indicator of rapid disinflation. US PPI inflation data showed a welcome decline in both core and headline indicators in April.
The year-on-year comparison for April showed an increase of 2.3% versus the expected 2.5%. Growth is now forecast to be just 1.5% in May. The core producer price index came in at 3.2%, below April expectations of 3.3%. In May, only 2.9% is expected.
Other developments worth mentioning include Thursday's unemployment claims and Friday's customer sentiment. Thus, the week is full of extremely important events. Bitcoin and crypto are likely to react extremely volatile.