The cryptocurrency market is poised for a potentially pivotal week, with the U.S. Securities and Exchange Commission (SEC) expected to make a decision on Bitcoin spot exchange-traded funds (ETFs). If approved, these ETFs could further extend the recent rally that has seen significant gains across the sector.
Investors are particularly focused on the SEC's upcoming decision, which could see the approval of all 12 Bitcoin spot ETFs, including those from Franklin Templeton and Hashdex, by Friday. This anticipation comes amid preparations for a possible U.S. government shutdown on the same day, an event that has traditionally been favorable for cryptocurrencies. The situation is complicated by Moody's (NYSE:MCO) credit rating downgrade and the public comment period for new Bitcoin ETF filings. In response to the looming shutdown, temporary measures are being proposed, and government agencies are gearing up for potential disruptions.
Adding to the week's suspense, Tuesday will bring the release of the Consumer Price Index (CPI) report, which is expected to indicate a year-over-year decrease to 3.3% and month-over-month inflation at 0.1%. Stable core inflation rates around 0.3% may sway the Federal Reserve's stance on interest rate hikes—a factor closely monitored by crypto market participants. Federal Reserve Chairman Jerome Powell has indicated that such data will be crucial in determining monetary policy.
In addition to macroeconomic indicators, individual cryptocurrencies are experiencing their own developments. ApeCoin has shown a bearish divergence despite recent gains of about 40%, suggesting a possible correction ahead of its token unlock event on Thursday. Meanwhile, Amber Group has significantly increased its holdings of Optimism tokens, leading to a 50% price surge over the past month.
As investors navigate these various factors, Wednesday will offer further insights with the release of the Producer Price Index (PPI) report, likely showing a slight year-over-year increase from 2.2% to 2.3%. This data will provide more perspective on producer-level inflation trends at a time when Bitcoin's price hovers around $37,072.
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