3 Reasons Why Crypto Could Explode When Key US Economic Data Lands on Wednesday
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This week, several critical pieces of economic data will be released, raising anticipation for the Federal Reserve's interest rate policies. And these releases could spell the start of some significant gains in cryptocurrency prices.
This week, investors and analysts will be looking forward to the release of the Producer Price Index (PPI) and retail sales data. The PPI measures the change in prices received by local producers for their products over time. On the flip side, the retail sales data would show the total sales value at the country's retail value.
The data will be available on Wednesday, with investors expecting a drop in both metrics thanks to reduced gasoline prices. This has enabled producers to reduce factory costs, and as production costs have decreased, producers have been able to adjust prices.
In addition, the reduced prices of products are expected to neutralize the anticipated drop in retail demand.
In November, retail sales in the United States posted their biggest drop in 11 months. A similar drop in December 2022 will add to recent indications that the Federal Reserve's aggressive interest rate hikes have begun to cool the economy. Following a drop of 0.60% in November, economists predict a drop of 0.80% in Wednesday's figures.
Like all markets, crypto investors will be on edge as the PPI & retail sales data will be released on Wednesday. However, here are three other reasons why crypto prices are poised for massive surges in the near term at least:
The primary issue remains interest rates right now. The Federal Reserve has employed strong rate hikes to stall
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