This will be important for crypto market this week

The crime story about the insolvency of the crypto exchange FTX led to great uncertainty among investors in the last week of trading and pushed the crypto currency Bitcoin (BTC) to a new low for the year. On the other hand, significantly declining US inflation rates in the second half of the week on the classic financial market caused the strongest price increase in the Nasdaq technology index since April 2020. The crypto market was also able to benefit from this bullish recovery movement and at least partially cushion the price drops on the crypto market. However, the price recovery for Bitcoin and Co. only lasted for a short time. Over the weekend, the BTC price slipped again towards its annual low – rumors of further irregularities in the liquidity of other central crypto exchanges caused investors to increasingly transfer their coin holdings to external crypto wallets such as Metamask and Trustwallet. The loss of confidence after the FTX bankruptcy seems stronger than ever. This trading week is therefore not under a bullish star and should again lead to increased volatility on the crypto market.

China’s industrial production and US producer prices in focus

Tuesday, November 15, 2022: Investors are initially looking to the Far East this week. In the early hours of the morning (03:00 CET), new figures on industrial production in the People’s Republic of China will be published in China. After an unexpectedly strong increase to 6.3 percent in the previous month, the market analysts expect a slight decline to 5.2 percentage points for the past month of October. Industrial production measures the change in the industrial output of producers, mines and utilities. The manufacturing industry in China is considered extremely sensitive due to the rigid 0-Covid strategy. If, contrary to expectations, economic activity picks up, industrial production is also likely to increase. If, on the other hand, China’s economy weakens again, production output usually also declines. Problems in China usually have an impact on the rest of the world, which is likely to have an impact on western economic performance. The US dollar could thus initiate a bullish countermovement after a significant course correction in the previous week, which should further increase the price pressure on Bitcoin and the Altcoin sector.

New US producer prices (PPI) for the past October will follow at 2:30 p.m. (CET). The forecasts of the market experts predict an increase from 0.4 percent to 0.5 percent compared to September. If there are no price increases, and the PPI, similar to the consumer price index (CPI) even falls last Thursday, this should fuel the price rise on the stock markets and depress the US dollar in value. Optimally, this also takes some selling pressure off the crypto market.

If, on the other hand, the producer price index is above analysts’ expectations, this should result in a bullish development of the US dollar against the euro. As in the last few months, renewed dollar strength could lead to increased selling pressure on the US stock market and crypto market.

EU consumer prices in focus

Thursday, November 17, 2022: At 11:00 a.m. (CET), market experts will focus on the updated consumer price index (CPI) for the euro area for the past month of October. An unchanged inflation rate of 10.7 percent is expected. If the inflation rate is lower than expected by the market observers, this would be positive for the stock markets and the crypto market, similar to the US consumer prices in the previous week, since the interest rate pressure on the ECB, similar to the USA, at least should decrease in the short term. If, on the other hand, the consumer price index is again above market forecasts, the European monetary watchdogs would have to stick to their plan for a further significant interest rate hike. As a result, declining stock and crypto prices should be planned again.

Existing home sales in the US at the end of the week

Friday, November 18: At 4:00 p.m. (CET), new sales figures for existing properties for the past month of October will be presented. The monthly data collected by the Association of US Realtors reflects the current consumption level of the citizens. Higher-than-predicted sales indicate rising consumer spending in the US. Should the house sales of existing properties fall below the number of 4.39 million property sales expected by market analysts, the recent positive trend would reverse again, which would indicate renewed consumer restraint. In the previous month, 4.71 million existing properties changed hands. Statistically, weak sales figures tend to have a negative impact on the strength of the US dollar. As was the case recently, negative market data in the current situation could have a positive effect on prices on the stock and crypto market, as the US Federal Reserve wants to prevent a total crash in the important real estate market.