Critical Week for Crypto: CPI Data, Fed Speakers, and a Trump-Putin Summit

Crypto, and Bitcoin for that matter, is heading into one of its most critical weeks of the year. The price has jumped to over $121,000, now within striking distance of its all-time high, as a perfect storm of major economic and political events is set to unfold. , fueled by optimism around potential Fed rate cuts and new pro-crypto U.S. policies.

How we got here.

This week’s calendar is packed with major U.S. economic reports. Consumer Price Index (CPI) data arrives Tuesday, followed by jobless claims and Producer Price Index (PPI) numbers on Thursday.

Traders see these releases as pivotal for the Fed’s policy path, with current market pricing already giving an almost 90% probability of a rate cut in September. A lower-than-expected CPI reading could push those odds even higher.

Lower rates often support risk assets like cryptocurrencies and technology stocks, as borrowing costs decline and liquidity expands.

Moreover, several Federal Reserve officials will speak throughout the week, offering clues about their inflation outlook and policy stance. The tone of these speeches could reinforce or challenge market expectations. Significantly, the recent appointment of Stephen Miran, a crypto-supportive voice, as a temporary Fed governor adds another dovish influence to the committee.

On the corporate front, large bitcoin treasury purchases are drawing attention. Nakamoto, a major bitcoin-focused firm, will reportedly acquire hundreds of millions of dollars in bitcoin this week.

This follows Michael Saylor’s company Strategy, which bought nearly $2.5 billion worth of bitcoin last week, bringing its holdings to almost 3% of the total supply. Such aggressive accumulation reduces available liquidity and can drive prices higher, especially when combined with robust retail demand.

Institutional interest is also rising through exchange-traded fund inflows. The SEC’s recently launched “Project Crypto” aims to deliver clearer regulatory guidelines, which could encourage more traditional investors to participate. This trend strengthens bitcoin’s case as both a strategic reserve asset and a hedge against inflationary pressures.

The political backdrop adds another layer of potential volatility. President Donald Trump is set to meet Russian President Vladimir Putin in Alaska on Friday.

While the agenda is not yet made public, major geopolitical events often influence investor confidence and can cause unexpected moves in the market.

The Trump Effect.