Cryptocurrencies like Arweave (AR), Hedera Hashgraph (HBAR), Pepe, and IOTA prices as investors focus on the upcoming US Consumer Price Index (CPI) report on Wednesday.
These numbers come at a time when most altcoins have dipped substantially in the past few months. While the Arweave price has jumped by almost 100% from its lowest point in April, it remains below the year-to-date high of $47.57.
Hedera Hashgraph price has collapsed by almost 40% from its highest level this year. Similarly, the prices of Pepe, IOTA, and Dogecoin have all moved into a deep bear market.
Therefore, this will be a crucial week for two main reasons. First, the US will publish the latest CPI data on Wednesday. Economists polled by Reuters expect the data to show that the headline CPI dropped to 3.4% in April while the core CPI fell to 3.6%.
The US will also publish the latest Producer Price Index (PPI) and the country’s retail sales on Tuesday and Wednesday. Economists expect these numbers to reveal that retail sales held steady in April. Key US retailers like Walmart, Home Depot, and Target will publish their numbers this year.
These are important numbers because they will have an impact on the next Federal Reserve actions. If inflation fell in April, it means that the Fed will decide to slash interest rates sooner since the US economy is slowing.
The most recent data from the US revealed that consumer confidence has tumbled while the manufacturing and services PMIs fell below 50. Industrial production has also been in a downward trend.
Signs of a dovish Fed will be positive for cryptocurrencies and stocks and bearish for the CBOE VIX index.
Second, this will be a crucial week because it will provide more information about the ongoing crypto and stock divergence. Key US indices like the Nasdaq 100, S&P 500, and Dow Jones have soared for three straight weeks and are nearing their all-time highs.
Therefore, this will be a crucial week as investors watch whether the negative correlation between stocks and cryptocurrencies will continue. Besides, the earnings season is now ending since 92% of all S&P 500 indices have published their results.
