The Fed’s Next Move Hangs on Four Numbers This Week. What Crypto Traders Must Watch

This week, four crucial U.S. economic data releases will significantly influence Bitcoin's price and guide crypto traders. The Federal Open Market Committee (FOMC) minutes on Wednesday, followed by February Personal Consumption Expenditures (PCE) inflation and Q4 Gross Domestic Product (GDP) data on Thursday, and concluding with March Consumer Price Index (CPI) on Friday, will be closely watched. Bitcoin, currently trading below $69,000 after a poor first quarter, is highly correlated with the S&P 500, making it sensitive to macroeconomic signals. The FOMC minutes could reveal the Fed's stance on inflation and growth risks, potentially impacting BTC through 'sell-the-news' patterns. PCE inflation data will be critical, with a return to a 3% handle being significant for rate expectations; hotter prints could tighten financial conditions, while cooler readings might boost rate-cut odds. The Q4 GDP final estimate, expected to show slowing momentum, could paradoxically support crypto by increasing expectations for Fed easing. The March CPI is the most anticipated release, with forecasts predicting a sharp jump driven by energy prices. The core CPI figure will be key, as a higher reading could derail rate cut expectations, while a contained core print might be viewed as a transitory energy event. The sequence of these releases matters, with a dovish week potentially favoring crypto upside, while hawkish prints could lead to a price decline. Spot Bitcoin ETF flows offer some stability, but overall demand remains negative. These four numbers will likely determine if Bitcoin experiences its historically bullish April or continues its first-quarter struggles.

(Source：BeInCrypto)