Seeds of Wisdom RV and Economic Updates Monday Morning 3-17-25
KEY US ECONOMIC EVENTS THIS WEEK: HOW MARKETS AND CRYPTO MAY REACT
▪Key US economic indicators this week, including retail sales, housing starts, and jobless claims, will provide signals about the economy.
▪The Federal Reserve's interest rate decision, expected to remain unchanged, will be closely watched for future policy hints.
▪Multiple indexes released on Thursday, including Existing Home Sales and the Fed Manufacturing Index, are forecast to decline.
This week, several key economic events in the US could shape market trends and investor sentiment. From retail sales and housing data to jobless claims and the Federal Reserve’s interest rate decision, these reports will offer crucial insights into the state of the economy.
Why does this matter? Because shifts in economic indicators don’t just affect traditional markets – they impact crypto too! A strong economy could fuel investor confidence, while signs of slowdown might trigger uncertainty.
Prime US Economic Events This Week
US Retail Sales Index – Monday
The US Retail Sales Index, set for release on Monday, measures the total sales of retail goods and services over a month.
In January, it dropped from 0.7% to -0.9%. The consensus expects that it would rise from -0.9% to 0.7%. According to TEForecast, the index would climb to 0.5%.
An increase in retail sales usually signals a strong economy, boosting investor confidence and encouraging riskier investments like cryptocurrencies. However, if consumer spending is too strong, the Federal Reserve may take a stricter stance on interest rates, which could negatively impact the crypto market.
US Housing Starts Index – Tuesday
The Housing Starts Index, coming out on Tuesday, tracks the number of new residential construction projects that begin each month.
In January, the index fell from 1.515 million to 1.366 million. The consensus forecast predicts a slight increase to 1.375 million, while TEForecast expects a further decline to 1.34 million.
A rise in housing starts signals economic growth and can boost investor confidence. However, if construction activity increases too much, it may push interest rates higher, making borrowing more expensive and potentially slowing down crypto investments.
US Initial Jobless Claims – Thursday
The Initial Jobless Claims report, scheduled for Thursday, tracks the number of people filing for unemployment benefits for the first time.
In the second week of March, it slipped from 222K to 220K. The consensus estimates that it would grow sharply from 220K to 224K. As per TEForecasts, it would reach as high as 225K.
Higher jobless claims indicate economic weakness, which can lower investor confidence. However, a weakening labor market may also delay interest rate hikes, which could support crypto prices in the short term.
US Existing Home Sales – Thursday
The Existing Home Sales Index, also releasing on Thursday, measures the number of homes sold where the mortgage has been finalized.
In January, home sales fell from 4.29 million to 4.08 million. Analysts expect another drop to 3.92 million.
A drop in US existing home sales signals economic slowdown. It may also suggest lower consumer spending. This could affect crypto market sentiment adversely.
Philadelphia Fed Manufacturing Index – Thursday
The Philadelphia Fed Manufacturing Index, based on a survey of manufacturers in the Third Federal Reserve District, is set for release on Thursday.
In February, the index dropped from 44.3 points to 18.1 points. Analysts expect it to fall further to 12.1 points, while TEForecast predicts a decline to 11 points.
A shrinking manufacturing index indicates economic contraction and could lead to a more cautious market, affecting investment in both traditional and digital assets.
Federal Reserve Interest Rate Decision – Wednesday
The Federal Open Market Committee (FOMC) will meet on Tuesday, with its decision on interest rates expected on Wednesday.
Most experts believe the Federal Reserve will keep rates unchanged for now. Recently, Fed Chair Jerome Powell suggested that the central bank is taking a cautious “wait-and-see” approach, as many economic factors remain uncertain.
@ Newshounds News™
Source: Coinpedia
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SOUTH KOREA'S CENTRAL BANK RULES OUT BITCOIN RESERVE POSSIBILITY: REPORT
▪The Bank of Korea said it has not considered the option of creating a bitcoin reserve.
▪The central bank cited bitcoin’s volatility and IMF guidelines as the reasons for its decision not to review.
The Bank of Korea (BOK) stated Sunday that it has not considered the possibility of incorporating bitcoin into its foreign exchange reserve, in an answer to a written query from a member of the National Assembly's Strategy and Finance Committee.
The BOK cited bitcoin's high volatility as a primary reason for its negative stance on accruing the cryptocurrency, the Korea Economic Daily reported.
The central bank expressed concern that volatility in the cryptocurrency market could lead to a significant surge in transaction costs when cashing out bitcoin, according to the news report.
Bitcoin also does not comply with the International Monetary Fund's guidelines for foreign exchange reserve management, the BOK said. The IMF states in its guidelines that a foreign exchange reserve must control liquidity, market and credit risks "in a prudent manner."
On March 6, U.S. President Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve, based on the BTC the government seized from criminal or civil proceeding
While Trump's move prompted several countries to positively consider creating their own bitcoin reserves, the South Korean central bank has cited skeptical views shared by Japan, Switzerland and the European Central Bank.
Beyond the issue of creating a bitcoin reserve, South Korea has recently been moving to loosen its strict regulations on crypto. The country's financial watchdog is currently rolling out its plan to gradually lift the ban on institutional crypto trading, and is preparing to establish its second crypto legal framework, focusing on managing stablecoins.
The Block reached out to the BOK for further comment.
@ Newshounds News™
Source: The Block
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