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The overall market is red, investors are afraid and lending protocols have to fear for their existence: Although the sideways trend has ended, this does not bode well for most people in crypto sector. Even in the young week there are dates that could influence the prices of BTC and Co. The most important of them below.
Most important news for the crypto sector in this week
The US Federal Reserve is raising interest rates
On Wednesday, June 15, at 8:00 p.m. (CET), the interest rate hike by the American Federal Reserve, which all market participants were expecting, will be announced. The majority of analysts are currently assuming an interest rate hike of 50 basis points to 1.50 percentage points. Due to an inflation rate of 8.6 percentage points in May, some important players, such as the US bank, see it JP Morgan, now even considers a rate hike of 75 basis points to be justified. In addition, the economic and financial situation in the USA and the economic outlook are published in the so-called FOMC statement.
At 8:30 p.m. (CET), Fed Chair Jerome Powell will hold a press conference in which he will answer questions about the US Federal Reserve’s financial policy.
Retail sales in the USA will also be announced as early as Wednesday afternoon at 2:30 p.m. (CET). These are regarded as an important indicator of the buying mood of consumers. Most recently, these had remained well below their analysts’ expectations. The majority of market players are currently anticipating an increase in end consumer sales of 0.8 percentage points. A reading below this forecast would indicate increasing fears among consumers.
Bank of England announces rate decision
On Thursday 16 June at 13:00 (CET) the Bank of England (BOE) will announce its interest rate decision for June. Market observers are currently assuming an interest rate increase of 25 basis points to 1.25 percentage points. A higher-than-expected rise in interest rates is likely to further increase the pressure on the equity sector and especially risky asset classes.
At 2:30 p.m. (CET) the number of initial jobless claims in the USA will then be announced. 215,000 new initial applications are currently expected. A value significantly above this forecast would be an initial indication of a medium-term change in direction by the Fed, since new fiscal policy relief may be necessary to avert a sharp rise in unemployment in the USA.
Consumer Price Index in the Eurozone
On the last trading day of the week, June 17, data on the consumer price index (CPI) in the euro zone will be released at 11:00 a.m. (CET). The forecast of the analysts is an increase of 0.8 percent compared to the previous month. Here, too, a higher value is likely to put the European Central Bank (ECB) increasingly in need of action and make faster interest rate hikes more likely.
The triple expiry of options on the so-called Witches’ Sabbath should also lead to an increase in volatility on the global financial markets. Because next Friday options on indices, stocks and commodities with a volume of 3.2 trillion US dollars expire. Four times a year, on the third Friday of the month, bets on a wide variety of asset classes are settled. Statistically, volatility increases significantly on the expiry date itself and the days before.
