Important evens for cryptocurrency this week
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The crypto market has so far shown its bullish side in the new trading month of April. In the course of significantly lower than expected inflation figures in the USA, the Bitcoin (BTC) price, together with a rising US stock market, was able to continue its positive trend of the past few weeks and reached a new high for the year at 31,050 US dollars. The second-largest cryptocurrency, Ethereum, also continued its price recovery in the course of the successful Shapella update and rose to a new historical high of 2,135 US dollars. The statistically bullish month of April has thus had its full effect so far. In addition to good economic data, the weakness of the US dollar index (DXY) also had a positive effect on the entire crypto market, as expected. The latest Bitcoin price forecast from April 14th analyzes which Bitcoin price levels are likely to be relevant for investors in the coming years.
The following economic data will be relevant this week
The trading week begins on Tuesday with new data on US housing starts. The final consumer prices for Europe for March will follow in the middle of the week. The minutes of the last ECB interest rate decision will be published in the early afternoon on Thursday. Later in the afternoon, market participants await the release of the latest figures on existing home sales in the United States.
Building permits in the US at the beginning of the week
Tuesday, April 18, 2023: At 2:30 p.m. (CET) this will be presented final number of building permits for the month of March. The number of permits granted is considered a leading indicator for the US housing market. Most recently, the number of new building permits was again above the expectations of the experts, which speaks for a slight recovery in the crisis-ridden real estate market. Compared to the previous month, however, the analysts expect a decline from 1.550 million in March to 1.450 million for the current trading month of April. After the latest figures were released, the Bitcoin price reacted positively and increased in value. However, if the number of building permits granted is below expectations, as forecast by the experts, a course correction in the US stock indices could follow and also allow the crypto market to consolidate.
Inflation data for the Eurozone
Wednesday, April 19, 2023: At 11:00 a.m. (CET), the final consumer prices for the euro area in March will be presented. In the March 31 advance release, inflation data came in at 6.9 percent, down 0.2 percentage points from the forecast of 7.1 percent. The experts are also anticipating an inflation rate of 6.9 percent for the final data. If the expectation is met or is even below the expectations of the analysts, the market should have a positive effect on the prices on the stock and crypto market, similar to the previous week after the publication of the declining US inflation data. If, on the other hand, consumer prices are above the analysts’ forecast, this would be another setback in the fight against inflation in Europe. As a result, prices on the financial markets could trend south and have a negative impact on the price of Bitcoin.
ECB meeting minutes provide information on the position of the European Central Bank
Thursday, April 20, 2023: At 1:30 p.m. (CET), the top monetary watchdogs in the euro zone will publish the transcript of the last central bank meeting on March 16. After the base rate hike by a further 50 basis points, market observers are hoping for further insights into the future interest rate policy of the ECB. Any indication of a less tight monetary policy by the European Central Bank in the future should have a positive impact on the equity indices in Europe. Since Bitcoin trended positively after the last interest rate hike in Europe, it remains to be seen what impact new indicators of maintaining the hawkish interest rate policy could have. Investors should watch the development of the euro-dollar currency pair. If the euro continues to strengthen and thus weaken the US dollar, the crypto market could benefit and continue to gain strength.
More data from the US housing market
At 4:00 p.m. (CET), the National Association of Realtors announces the latest sales figures for existing properties for the month of March. This data is an important indication of the state of the US housing market. If the sales figures are above expert expectations, this indicates increasing consumer spending and a stabilization of the US economy. If the forecasts are missed, it would be confirmation that the housing market will continue to cool down. In the previous month, the sales figures were well above the expert forecasts and caused prices to rise on the US stock and crypto markets. Should the published numbers again exceed the estimate, which was reduced to 4.50 million compared to the previous month, the US dollar should continue to fall, as it did recently, which should again have a positive effect on the price of Bitcoin and Co. If, on the other hand, the sales figures for existing properties indicate renewed weakness and are even below the expert forecast, the US dollar could recover in an initial reaction and thus have a negative impact on the US stock market and the Bitcoin price.
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