Crypto Market on Edge as Investors Await Key Economic Data

The cryptocurrency market is bracing for potential volatility this week as investors focus on key economic data releases and Federal Reserve updates. Fed Chair Jerome Powell's testimony and the U.S. Consumer Price Index (CPI) report are expected to influence market sentiment.

Powell will address Congress on Feb. 11, providing insights into the Fed’s stance on interest rates, inflation, and economic policy. His remarks could impact risk assets, including Bitcoin and Ethereum. Investors will closely monitor his testimony on Tuesday and Wednesday for any indications of future monetary policy moves.

The U.S. CPI report for January, set for release on Feb. 12, is another crucial factor. A higher-than-expected inflation reading may reduce the chances of an early rate cut, potentially pressuring crypto prices. Conversely, a lower CPI could spark a risk-on rally. Additional economic reports, including core inflation data on Wednesday, the producer price index (PPI) on Thursday, and retail sales data on Friday, will provide further market direction.

The crypto market remained flat on Monday, with Bitcoin rebounding above $97,000 after dipping to $94,730. BTC currently trades between $90,000 and $100,000, with a tighter range of $95,000 to $100,000 in recent sessions. Ethereum dropped to $2,522 on Sunday before recovering to $2,645. While Solana (SOL), Monero (XMR), Litecoin (LTC), and SUI posted gains, XRP, BNB, Stellar (XLM), and PEPE saw declines.

The Crypto Fear & Greed Index remains in fear mode, with a score of 44, reflecting cautious investor sentiment. With economic data looming, traders should prepare for potential price swings in the coming days.