Bitcoin traders face another potentially volatile trading week as September CPI takes center stage on Wednesday, while other key events, such as producer inflation, retail sales, and fresh Fed commentary, are likely to influence the markets as well.

The cryptocurrency enters the week after a major crash last Thursday, and it’s yet to recover most of the losses.

Main Event CPI

The Bureau of Labor Statistics is scheduled to publish the September Consumer Price Index (CPI) report on Wednesday, October 14, at 8:30 a.m. ET, and, as usual, markets will be watching both headline and core inflation closely. A hotter-than-expected reading could strengthen expectations that the US central bank will maintain a more restrictive stance, potentially pushing Treasury yields lower and the greenback higher.

A softer number, on the other hand, would likely be more supportive for risk assets, especially if it strengthens the argument that inflation is indeed cooling despite the energy crisis.

CPI, though, is not the only major inflation catalyst this week, as the Producer Price Index (PPI) is due on Thursday. It will provide another indication of inflationary pressure in the country and is likely to be used by the Federal Reserve before its next FOMC meeting at the end of the month.

These reports come at a sensitive time for bitcoin following another volatile period, meaning that even a modest surprise could produce major fluctuations.

Retail Sales and the Fed

September retail sales will be announced on the same day as PPI and could offer fresh insight into the strength of US consumer demand. A combination of sticky inflation and resilient spending would likely complicate the monetary policy outlook even further.

The central bank will also remain in focus throughout the week. Recall that US Fed Governor Christopher Waller’s comments from last week added to the overall pressure on the asset and became one of the many reasons behind BTC’s nosedive. Policymakers are scheduled to make public appearances this week, and markets are likely to scrutinize any new comments on inflation and the upcoming rate decision.

Separately, the Fed’s Beige Book is due Wednesday afternoon, providing a broader snapshot of economic conditions across the central bank’s districts.