Could Crypto Markets Hit $2T On This Week’s Economic Events?

It's been a busy week for economic events with key CPI reports and several Federal Reserve speeches. Crypto markets have been at a two-year high, but are they about to break out?

Macroeconomics outlet Kobayashi's letter listed the key economic events for the United States since February 12. Following the weekend, the total market capitalization for Bitcoin and crypto markets is approaching $2 trillion.

Upcoming Economic Indicators: Core CPI, Retail Sales and PPI

On Tuesday, the main CPI report, or consumer price index, of the two key indicators used to measure inflation, will be released.

Investors pay attention to this as it reflects price trends in the economy and shapes consumer spending and business attitudes. It also directly affects Federal Reserve policy rate decisions.

Moreover, January retail sales will be released on Thursday. This report provides data on consumer spending on various durable and non-durable goods. It basically assesses the overall health of the economy and consumer spending habits.

On Friday, the Producer Price Index (PPI) for the previous month will be released. This report reflects the prices of producers and manufacturers and is seen as a good early indicator of inflation.

Friday will see last month's Consumer Sentiment Index and initial consumer price inflation. These reports provide monthly survey results on consumer confidence levels and long-term inflation outlooks.

In addition, the level of confidence affects consumer spending, which accounts for 70 percent of the U.S. GDP.

Read more: How to protect yourself from inflation using cryptocurrency

Investors were bullish last week, as seen in US stock markets. The S&P500 hit new records late last week, reaching 5,000 points for the first time.

In addition to all the economic reports, several Fed speakers will make comments this week. These include Federal Administrators Michelle Bowman and Christopher Waller and Federal Regulatory Vice Chairman Michael Barr.

Impact of the Crypto Market

Crypto markets are currently at their highest total capitalization since April 2022. The figure added $1.9 trillion to a 1% gain in Monday morning's Asian trading session.

Bitcoin hit a high of $48,729 on February 12 before retreating to $48,144 on February 12. The asset has gained 13.5% in the past seven days.

Ethereum has been slow to respond, dropping slightly to $2,500 in the past 24 hours.

Most altcoins are in the red after a week of strong gains, most of which took place over the weekend.