Bitcoin and crypto face these key dates in the coming week
The coming week once again contains important economic data and events for the Bitcoin and crypto market that traders should follow. Last week, Bitcoin hit a new annual high of $28,921 before US Federal Reserve (Fed) Chairman Jerome Powell wiped out the rally with his hawkish comments during the FOMC press conference.
This week, in addition to some important economic data, the US banking system will again be in focus. The banking sector in the US and also in Europe (after the Credit Suisse rescue) is still under pressure.
Fed reported last week that US banks collected $475 billion in the aftermath of the banking crisis. In the two weeks since the SVB collapse, over $500 billion has also been withdrawn from small banks.
Small, regional American banks in particular continue to suffer, while large banks are the winners of the banking crisis. According to the Wall Street Journal, almost 200 banks are still struggling with the same problems as Silicon Valley Bank (SVB).
In the second week of March, deposits in small banks fell by 119 billion dollars
Deposits at major banks increased by $67 billion in the same week pic.twitter.com/NKxR5p9xsD
— Genevieve Roch-Decter, CFA (@GRDecter) March 26, 2023
Meanwhile, there is still no solution. Last week, Treasury Secretary Yellen said that the US is considering supporting all deposits. A day later, she reversed her statement and said the government was no longer considering doing so.
With this in mind, the many speeches from Fed officials this week could be interesting and should be followed by traders. Special attention must be paid to the US Senate Banking Committee’s hearing on the Silicon Valley Bank collapse with the FDIC’s Gruenberg, Deputy Comptroller Michael S. Barr and Treasury Department officials on Tuesday, March 28.
Financial data that can move Bitcoin and Crypto
On Tuesday, March 28, the Conference Board (CB) will release the US consumer confidence figures for March at 10:00 a.m. EST. The reading came in at 102.9 in February, well below expectations of 108.5 and down for the second month in a row.
For the month of March, market experts expect a further decline to 101.0. If the forecast is exceeded, the US Dollar Index (DXY) is likely to continue its upward movement from last week and could act as a headwind for Bitcoin. A possible decline of even greater magnitude, on the other hand, would likely weaken DXY and favor crypto.
On Thursday, March 30, 2023, the final US Gross Domestic Product (GDP) for the fourth quarter of 2022 will be released at 8:30 AM EST. The projections are for economic growth of 2.7 percent.
If the number is confirmed or better, it could speak to the resilience of the US economy and ease fears of a recession. The reaction in both traditional financial markets and the Bitcoin market will probably be positive.
Friday 31 March at At 8:30 a.m. EST, the Bureau of Economic Analysis will present the US core PCE rate for the month of February. This data point is expected to be the most important for the whole week, as it is the preferred inflation gauge of Jerome Powell.
The forecast is for a month-on-month increase of +0.4%, the same as last month. Last month, the PCE price index had already exceeded market forecasts by +0.6%. As a result, there was a downward movement in the financial markets. However, if the core inflation rate has increased less, the Bitcoin price is likely to rise in response.
At press time, the Bitcoin price was at $27,774.
Featured image from iStock, chart from TradingView.com
