Crypto Market This Week: CPI And PPI Data In Focus Ahead FOMC

The crypto market is set to get super busy as this week includes the release of the macroeconomic data and earnings reports from the top U.S. companies. Investors’ sentiments would be in turmoil, impacting the performance of digital assets.

The Consumer Price Index (CPI) and Producer Price Index (PPI) readings will be closely watched ahead of the Federal Reserve’s meeting on July 29, while recent commentary from the Federal Reserve and U.S. President Donald Trump’s new tariff announcements continue to influence crypto market trends.

CPI and PPI Data Expected as Key Inflation Indicators

The U.S. Bureau of Labor Statistics is set to release June’s CPI report on Tuesday, July 15. Economists are forecasting a rise of 0.3% month-over-month and 2.6% year-over-year. This would mark an increase from the previous month’s 2.4% annual rate. The core CPI, which excludes food and energy prices, is also expected to rise by 0.3% month-over-month.

In a recent post, The Kobeissi Letter warned,

“If the CPI comes in hot next week, expect a big selloff on concerns about Trump’s tariffs causing inflation.”

The Producer Price Index (PPI) data will follow on Wednesday, July 16. Analysts expect a 0.2% to 0.3% monthly increase and a steady 2.6% annual rise. The PPI is viewed as a leading indicator of consumer inflation, and a higher-than-expected reading may strengthen the U.S. dollar, which could add pressure on risk assets, including cryptocurrencies.

The release of both reports comes as markets weigh the possibility of rising inflation driven by new U.S. trade tariffs. These economic readings are seen as critical ahead of the Federal Open Market Committee (FOMC) meeting later this month.

Federal Reserve Officials Set to Speak Before Policy Meeting

A series of speeches from Federal Reserve officials are scheduled this week. Fed Governor Michelle Bowman and Fed Governor Adriana Kugler will speak on Tuesday and Thursday, respectively. Investors will monitor their remarks for any updates on inflation expectations or monetary policy direction.

Minutes from the Fed’s June meeting, released last week, revealed that some policymakers support lowering interest rates as early as July. However, others voiced concern about inflation risks, especially due to President Trump’s proposed tariff hikes. The possibility of a rate cut has fueled optimism in the crypto market, pushing Bitcoin to new record highs.

Bitcoin traded at $117,235 on Saturday after hitting an ATH of $118,700, continuing its upward trend that began after the Fed minutes were released. The market appears sensitive to any signals suggesting a shift in monetary policy or changes in inflation outlook.

Tariffs Raise Inflation Concerns Among Traders

On July 10 and 12, President Donald Trump announced new tariff measures, including a 35% tariff on Canadian goods and 30% on imports from the European Union and Mexico. He also unveiled 50% tariffs on copper and products from Brazil, alongside higher charges for countries not reaching deals with the U.S. by August 1.

These tariffs are expected to increase the cost of imported goods, which could lead to higher inflation. Analysts warn that if CPI comes in above forecast, investors may expect the Fed to delay rate cuts. This scenario could trigger crypto market volatility and a possible correction in crypto prices.

Despite the tariff news, markets have so far remained steady. However, concerns remain that rising prices could impact consumer demand and delay any potential monetary easing by the Fed.

Corporate Earnings and Fed Chair Rumors Add to Uncertainty

Earnings season begins with reports from major banks such as JPMorgan, Citigroup, and Wells Fargo on July 15, followed by Bank of America, Goldman Sachs, and Morgan Stanley on July 16. Netflix, GE Aerospace, and PepsiCo are among those reporting on July 17.

These earnings may influence market sentiment, including in the crypto space, as investors gauge the broader economic picture.

There are also unconfirmed reports that Federal Reserve Chair Jerome Powell is considering resigning. Though no official statement has been released, some crypto market participants see this as a potential positive for digital assets. FHFA Chairman William Pulte said in a statement on social media,

“Such a move from Jerome Powell would be the right direction for America.”