US inflation data is scheduled for release on Tuesday. Cryptocurrency market players will be watching the numbers closely. Additionally, the SEC has placed crypto firms on high alert over staking products following the ruling against Kraken last week. We’ve prepared a few big stories and data and event calendar for our readers this week for cryptocurrencies to watch out for.
US inflation data
After a week dominated by regulatory action, markets will now look to Tuesday’s US CPI data. January inflation data is scheduled to be released on Tuesday. Analysts’ estimates show that the headline figure rose to 6.2% year-on-year from 6.5% in December. Cryptocurrency and traditional exchanges revived with December data. Still, monthly inflation is expected to rise 0.4%, and the Federal Reserve will no doubt watch this announcement closely.
Higher-than-expected inflation figures could lead the Fed to continue raising interest rates. Higher interest rates could have a negative impact on cryptocurrency, as the asset class acts as a risk asset that is sensitive to rate increases. On Friday, annual revisions from the Bureau of Labor Statistics revealed that inflation over the past few months has been slightly higher than previously reported. December inflation was revised from -0.1% to 0.1%. November was changed to a 0.2% increase instead of the previously reported 0.1% increase.
Regulatory restriction for cryptocurrencies?
The U.S. Securities and Exchange Commission (SEC) put crypto companies on alert with its ruling against Kraken last week. The regulator said on Thursday that crypto brokers must provide “appropriate disclosures and protections required by our securities laws” when providing services such as lending or staking. Kraken later agreed to end its on-chain staking services for US customers and will pay $30 million.
“Other platforms should take this into account and try to adapt,” chief Gary Gensler said on Friday. Coinbase, through its Chief Legal Officer Paul Grewal, noted that the firm’s staking product should not be restricted. Grewal outlined why in a blog post Friday. The SEC’s next move could have far-reaching implications for crypto firms and markets, as it did last week.
Data and event calendar to follow the market for cryptocurrencies
US CPI Expectation will be announced on Monday at 19:00. On Tuesday, at 16:00 CET, the main data, the US CPI, will come. These will include US CPI and US Core CPI data. Meanwhile, at 13:00 CEST on Tuesday, EURO Zone GDP data will be released. Finally, at 22:00 CET, Jhon Williams from the Federal Reserve will make a speech.
There are also important events in the crypto money market on Tuesday. For example, the popular metaverse project The SandBox (SAND) and dYdX (DYDX) will unlock tokens. As reported by Kriptokoin.com, the network upgrade of Terra Classic (LUNC) is also scheduled for Tuesday. Wallet of Elrond’s new brand, MultiversX, is also on display today.
The data calendar for Wednesday includes UK CPI, US Retail Sales and US Core Retail Sales. As an event, there is a speech by Christine Lagarde, President of the European Central Bank, at 17:00 CEST. In the crypto world, BitDAO’s un-lock activity will be followed and the mainnet launch of NULS will follow.
On Thursday, US Ongoing Unemployment Insurance Applications, US Core Producer Price Index and US Unemployment Benefit Applications will be announced at 16:00 CET. Speeches by Federal Reserve chairmen Loretta J. Mester and James B. Bullard will be followed. On Friday, the unlock activity of ApeCoin (APE) will be monitored.
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