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Most important events for Bitcoin and crypto this week

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The second half of the month has so far been characterized by profit-taking on the crypto market. Worse-than-expected sales figures and announced price reductions at the car manufacturer Tesla caused a correction in the key crypto currency Bitcoin (BTC) from the middle of the week, which also initiated a downward movement on the rest of the crypto market. Weak data from the US real estate sector reinforced the negative trend and acted as an additional headwind for Bitcoin and Co. While the US stock indices were still able to hold up relatively well, the prices of gold and silver, which have had a high price correlation to the Crypto lead currency, to new weekly lows. In a weekly comparison, the Bitcoin price corrected by eleven percentage points to 27,133 USD before the price began to stabilize. The second largest cryptocurrency Ethereum (ETH) even lost around 14 percent in value at the top.

The following economic data will be relevant this week

Fresh data on US consumer confidence will open the last reporting week in April tomorrow, Tuesday. Midweek is the update to US Durable Goods Orders for March. In the second half of the week on Thursday, the Office for National Statistics will then announce the first estimates for US gross domestic product (GDP) for the first trading quarter in 2023. On the last day of the trading week, market players finally look at the final data on the PCE core inflation rate for the US in March. In addition, the reporting season in the US is peaking this week. Quarterly figures from Microsoft and Alphabet on Tuesday, Facebook’s parent Meta on Wednesday and Amazon on Thursday should influence the price development of the Nasdaq100 and thus also the crypto sector.

US consumer confidence figures

Tuesday, April 25, 2023: At 4:00 p.m. (CET) tomorrow, Tuesday, the Conference Board (CB) will publish the latest figures on US consumer confidence for the previous month of March. At 104.2, the degree of optimism about economic development in the USA was above the expert expectations of 101.0. This means that consumer confidence has recently stabilized somewhat after weakening in the previous months. For April, analysts are forecasting a slight decline to 104.0. If the forecast is met or even exceeds expectations, the Bitcoin price should benefit, as it did in the previous month. If, on the other hand, the estimates are missed and consumer confidence is below expectations, as at the beginning of the year, this would be another indication of an imminent US recession in the second half of the year. In the recent past, weak consumer data has increasingly been interpreted negatively by the financial market. Accordingly, persistently weak consumer confidence could mean a correction extension in the crypto market.

Core US durable goods orders rate

Wednesday, April 26, 2023: At 13:30 (CET) the final figures for the core durable goods orders rate for the month of March will be announced. In the previous month, the core rate fell to -0.1 percent, falling below analyst expectations for the first time since October 2022. For March, the experts expect another decline of -0.2 percentage points. If the figures match the forecasts and incoming orders continue to decline, the US dollar should tend to strengthen, as it did in March. Further headwinds for the crypto market would not be surprising. However, if the incoming orders are above the expert forecasts, the stock market could be bullish in an initial reaction and also stabilize the crypto sector. Investors should continue to watch the US Dollar Index (DXY). The prices of Bitcoin and Co. are currently reacting very sensitively to the price movements of the US dollar.

Gross domestic product in the US

Thursday, April 27, 2023: At 2:30 p.m. (CET), the previously published US gross domestic product figures for the first quarter of trading in 2023 will be presented. The recent weak data led to a price correction on the stock markets and also on the crypto market. At 2.0 percent economic growth, the first estimate for the past trading quarter is well below the final data for the final quarter of the previous year of 2.6 percent. If the expert forecast is confirmed, this indicates a noticeable decrease in US growth in the first three months of trading. The financial market is likely to take persistently weak economic data with concern and increasingly sell stocks and crypto holdings. If, on the other hand, the current estimate is significantly exceeded, a positive market reaction should be planned for. The Bitcoin price should stabilize as a result and start a bullish recovery movement.

US PCE core inflation to end the week

Friday, April 28, 2023: At 2:30 p.m. (CET), the Bureau of Economic Analysis will release the latest figures on core inflation for the previous month of March. Most recently, the core rate of +0.3 percent was slightly below the forecast of +0.4 percentage points. The market analysts are expecting an unchanged increase of +0.3 percent for the trading month of March. If core inflation is higher than expert expectations, investors are likely to take a bearish view as the US Federal Reserve could continue to pursue its hawkish anti-inflation monetary policy. Accordingly, a weak end of trading on Friday would be expected. If, on the other hand, the core inflation rate rose less than analysts expected, as in the previous month, investors could see this as a positive indicator and invest more in equities and cryptocurrencies. The Bitcoin price should continue to benefit from falling inflation data.

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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