Bitcoin and Altcoins Brace for Volatility Ahead of CPI and Fed Chair’s Speech

• Federal Reserve Chair Powell’s testimony on February 11 will provide critical insights into monetary policy, potentially affecting market sentiment.
• The U.S. Consumer Price Index (CPI) report on February 12 will influence expectations regarding interest rate cuts and crypto price movements.
• Bitcoin remains in a narrow range between $95,000 and $100,000 as traders await economic data that could trigger significant volatility.

The cryptocurrency market is on alert as investors await crucial economic data and Federal Reserve Chair Jerome Powell’s testimony this week. Powell is set to address the House Financial Services Committee on February 11, offering insights into the Fed’s monetary policy stance. This will be followed by the release of the U.S. Consumer Price Index (CPI) data on February 12, a key indicator of inflation trends that could impact financial markets, including cryptocurrencies.

Powell holds congressional hearings on Tuesday through Wednesday where he plans to address interest rates, inflation levels as well as the macroeconomic situation. His congressional testimony would determine how financial investors anticipate Federal Reserve decisions, particularly about interest rate adjustments. A persistent restrictive policy framework from the Federal Reserve presents a risk for Bitcoin and Ethereum alongside other risk-based assets.

U.S. CPI Data Expected to Impact Crypto Markets

According to the Bureau of Labor Statistics, the release of the January Consumer Price Index data will take place at 8:30 a.m. ET on February 12. The latest inflation data release found within this report will steer expectations regarding potential future interest rate reductions. High inflation levels probably will hurt expectations about early rate reductions thus placing downward pressure on digital assets. The crypto market shows an increased positive trend after a weaker-than-expected CPI reading.

Investors will evaluate the Producer Price Index release and initial jobless claims and retail sales data starting on February 13 followed by February 14. Market movements may partially stem from these economic indicator reports since they provide a perception of U.S. economic status.

Crypto Market Performance and Investor Sentiment

Bitcoin leads the cryptocurrency market by value and its price currently fluctuates between $95,000 and $100,000 after Saturday’s market dropped to $94,730. Ethereum demonstrated a price increase from its previous level of $2,522 to reach $2,645. The cryptocurrency market saw light increases from Solana Monero and Litecoin but XRP and BNB together with Stellar and PEPE experienced declines in value.