Bitcoin and Crypto Market Face Crucial Week Ahead of Christmas
The Bitcoin and crypto market are bracing for a pivotal week, with several high-impact economic events lined up that could significantly influence short-term price action. As year-end liquidity thins and the recent market downturn continues, price reactions to macro developments could be more volatile than usual. With key US economic data releases and global policy decisions on the horizon, traders and investors are closely watching how these events unfold, as shifting expectations around inflation and liquidity could determine whether the market recovers or extends its downside pressure.
The period from December 16 to 19 features key US economic data releases alongside global policy decisions that directly influence risk sentiment. Cryptocurrencies remain highly sensitive to shifts in interest rate expectations and dollar liquidity, making this week decisive for Bitcoin’s near-term direction. On December 16, October retail sales data and the November US Jobs Report are scheduled for release, providing insight into consumer strength and labor market conditions. These data points will influence the extent to which monetary policy may remain restrictive, with stronger retail spending or job growth potentially reinforcing expectations that interest rates stay higher for longer.
Key Economic Data Releases and Policy Decisions
Next, the November Consumer Price Index (CPI) inflation data and the December Philly Fed Manufacturing Index are due on December 18. Inflation remains one of the most influential drivers for crypto markets, and if inflation comes in stronger than expected, the US dollar could strengthen, weighing on Bitcoin prices. Conversely, softer inflation data may support risk assets by improving the outlook for Quantitative Easing (QE). December 19 will see the release of several key economic reports, including the National Core CPI year over year, November existing home sales, the revised UoM consumer sentiment, and inflation expectations. National Core CPI is especially important as it is the primary measure of underlying inflation and often triggers market volatility.
BTC fails to reclaim $90,000 | Source: BTCUSD on Tradingview.com
US FED and Japan Monetary Policy Events
The Bank of Japan (BOJ) is expected to announce its interest rate decision at the December 18-19 monetary policy meeting, which could affect global liquidity conditions. Governor Kazuo Ueda stated that the BOJ was weighing the advantages and drawbacks of raising interest rates from 0.5% to 0.75%. If a spike occurs, it could affect risk markets, including cryptocurrency. In addition, five US Federal Reserve speaker events are scheduled this week, and their comments and insights could quickly reshape crypto market expectations. Last week, the FED cut rates by 25 basis points at its final 2025 FOMC meeting, bringing the new US interest rate to 3.50-3.75%, triggering a surprising sell-off and underscoring the significant impact on Bitcoin and the broader crypto market.
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