"Crypto Braces for US Inflation, Jobs Data Shakeup"

The crypto market is bracing for a week filled with significant US economic events that could impact the portfolios of Bitcoin (BTC) holders. These macroeconomic events, starting on Wednesday, February 12, may influence the trading strategies of investors.

The influence of US economic events on Bitcoin and the broader crypto market has been resurfacing after a relatively quiet period in 2023. This week, four key US economic data releases are expected to have crypto market implications.

The week begins with the January Consumer Price Index (CPI) report on Wednesday. The CPI measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. In December, the CPI rate increased slightly to 2.9% year-over-year (YoY), while the core rate decreased to 3.2%.

Analysts expect the main CPI rate to come in at 2.85%, representing a modest drop of 0.5%. The core rate is forecast to have slightly decreased to 3.13%.

Beyond the US inflation figures, crypto markets will be keen to hear remarks from Federal Reserve (Fed) Chair Jerome Powell. His testimony is expected to play a crucial role in deciding the direction of US interest rates. Investors will be particularly interested in his comments regarding US President Donald Trump’s tariffs.

The US CPI data could affect risk-on assets like Bitcoin. High inflation would suggest a hawkish Federal Reserve stance, which could decrease the value of risk-on assets like Bitcoin in the short term. Higher interest rates can make traditional investments more attractive. Conversely, lower-than-expected inflation may indicate a more dovish stance from the Fed, which would be positive for Bitcoin.

On Thursday, the US Department of Labor (DoL) will release its weekly jobless claims report. This US economic data indicates the number of people who filed for unemployment insurance last week, providing a snapshot of the labor market’s performance. Lower-than-expected claims suggest continued job market strength, potentially signaling steady consumer spending and a resilient economy. However, such strength might prompt the Fed to consider raising interest rates, which could boost the USD but weigh on Bitcoin.

Also on Thursday, the US Producer Price Index (PPI) data will be out, offering insight into inflation at the producer level. The US Bureau of Labor Statistics (