Bitcoin And Crypto Face These Key Dates In The Week Ahead
The week ahead once again contains important economic data and events for the Bitcoin and cryptocurrency market that traders should be following. Last week, Bitcoin hit a new yearly high of $28,921 before US Federal Reserve (Fed) Chairman Jerome Powell ended the rally with his hawkish comments during the FOMC press conference.
This week, in addition to some important economic data, the US banking system will again be in focus. The banking sector in the US and also in Europe (after the Credit Suisse bailout) remains under pressure.
The Federal Police reported last week US banks raised $475 billion after the banking crisis. In the two weeks since the SVB collapse, more than $500 billion has also been withdrawn from small banks.
Small US regional banks, in particular, continue to suffer, while large banks are the winners of the banking crisis. According to the Wall Street Journal, about 200 banks still face the same problems as Silicon Valley Bank (SVB).
In the second week of March, deposits at small banks fell by $119 billion
Deposits at major banks increased by $67 billion in the same week pic.twitter.com/NKxR5p9xsD
— Genevieve Roch-Decter, CFA (@GRDecter) March 26, 2023
Meanwhile, there is still no solution. Last week, Treasury Secretary Yellen said the US was considering supporting all deposits. A day later, she reversed her statement and said the government is no longer considering doing this.
With that in mind, the numerous speeches by Fed officials this week could be interesting and worth watching for traders. Particular attention should be paid to the US Senate Banking Committee hearing on the collapse of the Bank of Silicon Valley with FDIC’s Gruenberg, Supervisory Vice President Michael S. Barr and Treasury Department officials on Tuesday, 28 March.
Economic data that can move Bitcoin and crypto
On Tuesday, March 28, the Conference Board (CB) will release the US consumer confidence numbers for March at 10:00 am EST. The reading came in at 102.9 in February, well below expectations of 108.5 and below for the second straight month.
For the month of March, market experts expect a further drop to 101.0. If the forecast is exceeded, the US Dollar Index (DXY) is likely to continue its bullish move from the previous week and could act as a headwind for Bitcoin. An eventual decline of even greater magnitude, on the other hand, is likely to weaken the DXY and favor cryptocurrencies.
On Thursday, March 30, 2023, the final US Gross Domestic Product (GDP) number for the fourth quarter of 2022 will be released at 8:30 am EST. Projections are for economic growth of 2.7%.
If the number holds true or even better, it could speak to the resilience of the US economy and ease concerns about a recession. The reaction in traditional financial markets and the Bitcoin market is likely to be positive.
On Friday, March 31st at 8:30 am EST, the Bureau of Economic Analysis will release the US PCE base rate for the month of February. This data point is expected to be the most important of the entire week as it is Jerome Powell’s preferred inflation indicator.
The forecast is for an increase of +0.4% compared to the previous month, the same as the previous month. Last month, the PCE price index already beat market forecasts by +0.6%. As a result, there was bearish movement in financial markets. However, if the core inflation rate has risen less, the price of Bitcoin is likely to rise as a reaction.
At press time, Bitcoin price was at $27,774.
Featured Image from iStock, chart from TradingView.com