It’s been a tough week for the cryptocurrency market, with losses continuing into the weekend.

A slew of US employment data hasn’t stopped stock markets from falling either, with the ‘Slump’ living up to its name. This week will be a busy one on inflation, with more jobless claims reports to come.

Economic Events September 9-13

Wednesday will see the release of the August Consumer Price Index (CPI), one of two key inflation measures used by the central bank. The data reflects price trends in the economy and shapes consumer spending, so it is closely watched by Fed policymakers as it will impact rate decisions.

Thursday will see the release of the August Producer Price Index (CPI), which measures the prices of raw materials for manufacturers and producers. It is also a preliminary indicator of inflation pressures, as it measures the cost of producing consumer goods, making it a leading indicator for next month’s CPI report.

Initial jobless claims data is also due out on Thursday, giving a broader picture of the labor market.

The preliminary Consumer Inflation Expectations data for September is released on Friday. The reports provide the results of a monthly survey of consumer sentiment and views on long-term inflation. They are also used as a component of the Fed’s inflation expectations index.

After weak economic data last week, the market is pricing in a 25- or 50-basis-point rate cut at the Fed’s September meeting, and the CPI report is likely to play a major role in that process.

A weaker-than-expected CPI report could increase the likelihood of a 50-basis-point rate cut at the Sept. 18 meeting. The CME Fed Watch tool currently has a 31% chance of a larger rate cut.

Crypto Market Outlook

In theory, a bigger rate cut would be good for crypto markets, but even that doesn’t seem to be enough to shake off the bearish sentiment at the moment.

Markets have returned to levels not seen since the Black Monday crash on August 5, with the total market cap falling below $2 trillion late last week. It has since recovered to $2.03 trillion, but remains at its lowest level since early February.

Bitcoin hit a weekend low of $53,300, but has since recovered to $55,000 during the Asian trading session on Monday morning. Ethereum has underperformed, with a brief dip below $2,200 over the weekend. The asset has recovered to $2,300, but remains weak.