Crypto Market Prepares for Pivotal Week as Inflation Data and Fed Signals Loom

• This week, CPI and PPI data releases could trigger crypto selloffs if inflation numbers run hot due to Trump’s new tariffs.

• Bitcoin hit $118,700 all-time high after Fed minutes hinted at July rate cuts, but tariff concerns may delay monetary easing.

• Fed officials speak this week while unconfirmed Powell resignation rumors add uncertainty to the crypto market outlook.

Cryptocurrency investors brace for a critical week starting July 15 as fresh inflation data and major earnings reports threaten to reshape market dynamics. The upcoming Consumer Price Index (CPI) and Producer Price Index (PPI) releases will provide crucial insights ahead of the Federal Reserve’s July 29 meeting, while President Trump’s recent tariff announcements continue to influence cryptocurrency sentiment.

Bitcoin maintained strong momentum at $117,235 on Saturday following its all-time high of $118,700. The rally gained steam after Fed meeting minutes suggested potential rate cuts, though inflation concerns from new trade policies cast uncertainty over monetary policy direction.

Key Inflation Data Could Trigger Crypto Volatility

The U.S. Bureau of Labor Statistics releases June’s CPI report on Tuesday, July 15. Economists forecast a 0.3% month-over-month increase and a 2.6% year-over-year rise, marking an uptick from the previous month’s 2.4% annual rate. Core CPI, excluding food and energy, is also expected to climb 0.3% monthly.

The Kobeissi Letter warned that hot CPI data could spark significant selloffs amid concerns about Trump’s tariffs driving inflation higher. This scenario could force the Federal Reserve to reconsider its dovish stance, potentially delaying anticipated rate cuts that have fueled crypto optimism.

Producer Price Index data follows on Wednesday, July 16, with analysts expecting a 0.2% to 0.3% monthly gain and steady 2.6% annual growth. Higher-than-expected PPI readings typically strengthen the U.S. dollar, creating headwinds for risk assets, including cryptocurrencies.

Federal Reserve Officials Navigate Policy Uncertainty

Fed Governor Michelle Bowman speaks Tuesday, followed by Governor Adriana Kugler on Thursday. Their remarks will be scrutinized for clues about inflation expectations and monetary policy shifts.

Recent Fed minutes revealed divided opinions among policymakers. Some officials support rate cuts as early as July, while others express concern about inflation risks from Trump’s proposed tariff increases. The president announced 35% tariffs on Canadian goods, 30% on EU and Mexican imports, and 50% charges on Brazilian copper products.

These trade measures could increase import costs and drive consumer prices higher. If CPI exceeds forecasts, markets may expect the Fed to delay easing measures, potentially triggering crypto corrections.

Major banks, including JPMorgan, Citigroup, and Wells Fargo, report earnings on July 15, followed by Bank of America, Goldman Sachs, and Morgan Stanley the next day. Netflix, GE Aerospace, and PepsiCo round out the week’s key reports on July 17.

Unconfirmed reports suggest Federal Reserve Chair Jerome Powell may be considering resignation, though no official statement has emerged. Some crypto market participants view this development as positive for digital assets.

The convergence of inflation data, Fed communications, and earnings results creates a complex backdrop for cryptocurrency markets. Traders remain vigilant as economic indicators could determine whether Bitcoin’s recent rally continues or faces near-term pressure from policy uncertainty.