"Fed Minutes, Jobs Data, Sentiment Index: Crypto's Week Ahead"

The third week of February brings several significant US economic events that could have implications for the crypto market. As the influence of US economic data on crypto markets remains apparent, traders and investors must watch out for the following key data points this week.

On Wednesday, February 19, the Federal Reserve (Fed) will release minutes from the January Federal Open Market Committee (FOMC) meeting. This is one of the most important US economic data events this week, as what policymakers say could help markets further gauge the Fed’s interest rate outlook. The minutes come after recent reports indicated CPI inflation jumped month over month, marking bad news in the short term. However, there are no major signs of inflation re-acceleration. The Fed chair, Jerome Powell, told a Senate Banking Committee that he is not in a hurry to cut interest rates, despite President Donald Trump pressing for bigger rate cuts to counter high inflation. Market participants now brace for further adjustments as they await additional policy updates. The January FOMC minutes could provide some insight into this matter, specifically addressing whether rate cuts are incoming or that policymakers lean toward more hawkish signals.

Beyond the January FOMC minutes, the crypto market will also watch the initial jobless claims on Thursday. For the week ending February 15, US citizens filing new applications for unemployment insurance was 213,000. This print missed initial estimates and was lower than the previous week’s revised tally of 220,000. Higher initial jobless claims in the Thursday report suggest increasing economic hardship and a weakening labor market, which could lead to decreased consumer spending. This slowdown prompted the Fed to consider rate cuts to stimulate the economy. As rates decrease, borrowing becomes cheaper, potentially boosting spending and investment, which favors Bitcoin as lower rates can increase demand for alternative assets.

The US Consumer Sentiment Index, specifically the preliminary report, will be released on Friday. This data reflects consumers’ overall confidence and optimism regarding the economy. A positive reading on Friday can increase optimism in financial markets, including cryptocurrency, resulting in higher demand for Bitcoin as investors seek assets with growth potential. Similarly, if consumer sentiment is strong, it may indicate that consumers are more willing to spend and take risks, translating into increased risk appetite among investors, potentially leading them to allocate more funds to cryptocurrencies like Bitcoin. However, it is impossible to ignore that consumer sentiment data often includes information