3 Major Catalysts That Could Send Crypto Markets Soaring This Inflation Data Week

Crypto markets brace for volatility as inflation data takes center stage this week.

Federal Reserve Whispers Move Markets

Every inflation print becomes a proxy for guessing the Fed's next move. Traders hang on every decimal point—because apparently modern monetary policy boils down to reacting to lagging indicators with theatrical gravitas.

Institutional Money Flow Shifts

Hot inflation numbers could trigger institutional portfolio rebalancing. Traditional funds might rotate out of bonds into inflation-resistant assets—including Bitcoin. Because nothing says 'hedge against monetary debasement' like digital scarcity.

Retail FOMO Cycles Accelerate

Positive macro news could ignite retail buying frenzies. Mainstream media coverage of inflation data often drives casual investors toward crypto—just in time for the smart money to take profits.

This week's economic data doesn't just move markets—it reveals how much traditional finance still dances to the Fed's outdated tune while crypto builds the next financial system.

Economic Events September 8 to 12

The August Producer Price Index (PPI) report is released on Wednesday, providing input costs for producers and manufacturers, which relate to the costs of consumer goods and retail prices. PPI reports are leading inflation indicators that are keenly watched by investors and analysts.

More inflation data will be released on Thursday, with August’s Consumer Price Index (CPI), which is one of the central bank’s key measures of inflation. CPI reports reflect price trends across the economy and directly impact consumer spending and sentiment.

Friday is the third day of inflation data with the September Michigan Consumer Sentiment Index and Consumer Inflation Expectations preliminary readings. These reports summarize consumer confidence and long-term inflation expectations, which impact retail spending.

While US President Donald TRUMP claims there is no inflation, consumers will beg to differ, and this week’s figures could be influential as CPI has been increasing over the past few months due to his tariffs.

Bank of America economists had a gloomy forecast: “We expect year-on-year headline CPI should rise from 2.7% to 2.9%, its highest since last July,” they said.

Key Events This Week:

1. 12-Month BLS Data Revision – Tuesday

2. August PPI Inflation data – Wednesday

3. OPEC Monthly Report – Thursday

4. August CPI Inflation data – Thursday

5. MI Consumer Sentiment data – Friday

6. MI Inflation Expectations data – Friday

The last…

— The Kobeissi Letter (@KobeissiLetter) September 7, 2025

The Kobeissi Letter also identified a key recession signal, which is “flashing red.”

US construction spending fell by 2.8% in July, one of the biggest drops since the 2008 Financial Crisis, and the sixth consecutive monthly decline.

Crypto Market Outlook

Rising inflation is not good for risk-on assets such as crypto, as retail investors will be tightening their belts.

Markets remained flat over the weekend, but there was a minor uptick during Asian trading on Monday morning, with total capitalization reaching $3.91 trillion.

Bitcoin has been tightly rangebound over the past few days and moved to the top of that range at just over $111,000 on Monday morning.

Ethereum has oscillated around the $4,300 price range, where it was still trading at the time of writing.

The altcoins were having a better day with more green than red and larger gains for XRP, Solana, Dogecoin, and Hyperliquid.