Crypto Markets Brace for Impact: Inflation Data Tsunami Hits This Week

Buckle up, traders—this week’s inflation data dump could send crypto markets into hyperdrive or a tailspin. The Fed’s favorite economic indicators are about to drop, and Bitcoin’s price action is looking twitchy.

Here’s what’s at stake:

• CPI numbers could cement September rate cuts—or torch the thesis

• Whispers of stagflation might trigger a flight to hard assets (hello, BTC)

• Altcoins will either ride Bitcoin’s coattails or get crushed in the liquidity crunch

Smart money’s already positioning. Retail? Probably still arguing about memecoins on X. Either way, grab your charts and popcorn—this is when crypto separates the degens from the strategists.

Economic Events July 14 to 18

Tuesday will see the release of the June Consumer Price Index (CPI) report, which is one of two key measures of inflation for policymakers, businesses, and consumers. This data reflects price trends, shapes consumer spending and sentiment, and directly influences the Fed’s rate decisions.

June’s CPI is expected to rise 0.23% to 0.25%, with inflationary pressures persisting, especially in energy and select goods due to tariffs.

More inflation data is due on Wednesday with June’s Producer Price Index (PPI). This report reflects costs for producers and manufacturers and measures the cost of producing consumer goods, impacting retail prices as a leading indicator of inflation.

June’s Retail Sales report is due on Thursday, offering insight into how much consumers are spending on durable and non-durable goods, and providing a leading indicator of economic health.

Key Events This Week:

1. Markets React to EU/Mexico Tariffs – Monday

2. June CPI Inflation data – Tuesday

3. June PPI Inflation data – Wednesday

4. June Retail Sales data – Thursday

5. July MI Consumer Sentiment data – Friday

6. Total of 12 Fed speaker events this week…

— The Kobeissi Letter (@KobeissiLetter) July 13, 2025

Friday will see July’s Michigan Consumer Sentiment Index and Inflation Expectations reports released, summarizing the findings of a monthly survey measuring consumer confidence and long-term inflation expectations.

“Investors have gotten calmer about the overall inflation outlook in the last few months,” Thierry Wizman, global foreign-exchange and rates strategist at Macquarie Group, told MarketWatch. “I wouldn’t say that the market has shifted toward disinflationary mode, but it’s certainly less inclined to be worried about inflation,” he added.

Big banks will kick off earnings season this week with JPMorgan Chase, Wells Fargo, Morgan Stanley, and Goldman Sachs all reporting this week.

Crypto Market Outlook

Total capitalization ticked up on Monday morning to reach $3.8 trillion, its highest level since mid-January.

It was primarily driven by Bitcoin, which added a further 1.7% to notch a new all-time high of $119,750 during the morning’s Asian trading session.

Ethereum had reclaimed $3,000 while the altcoins were mostly green, stellar and Hedera surging more than 20%.