Crypto investors will closely watch a series of macroeconomic data releases in the United States this week to gauge the state of inflation and its impact on the economy. Despite recent positive signs, such as a slight drop in the Consumer Price Index (CPI), the Federal Reserve is expected to continue its plan to raise interest rates by 25 basis points (bps). The Federal Open Market Committee (FOMC) will convene on July 25 to make its rate decision.

The FedWatch tool, which measures sentiment regarding interest rate decisions, has risen above 97%, indicating growing expectations of rate hikes. Multiple bank officials have expressed concerns about inflation posing a threat to the economy, even after pausing rate increases last month. Such monetary hawkishness has historically influenced crypto prices, leading to investor apprehension regarding central bank intervention.

Last week's CPI reading of 3.1% continued the downward trend but had little impact on the crypto markets. A favorable court decision related to Ripple's XRP had a more significant effect. Similarly, the mildly encouraging June Producer Price Index (PPI) and indications of a cooling job market earlier this month did not significantly sway crypto markets.

This week's focus will be on retail sales, industrial production, jobless claims, and existing home sales data. On Tuesday, the U.S. Commerce Department will release June retail sales figures, with a consensus forecast of a 0.5% increase compared to May's 0.3% reading. Continued growth in retail sales suggests ongoing consumer spending on various goods, which can contribute to upward price pressures.

The same day, the Fed will release the Industrial Production report for May, providing additional insights into economic growth. May's Industrial Production experienced a slight decline of 0.2% after two months of growth.

Thursday will see the release of weekly jobless claims by the Labor Department, with expectations of 240,000 claims, slightly higher than the previous week's total of 237,000. Although jobless claims have remained above 200,000, indicating a robust job market, observers are looking for substantial increases that would suggest a cooling job market.

Also on Thursday, the National Association of Realtors will publish its June report on existing home sales. Expectations are for a continuation of the market's slowdown. The housing market's strength has contributed to inflationary pressures. In May, existing home sales saw a marginal increase of 0.2% but were down 20% from the same month the previous year. The median sale price also experienced a decline of 3.1%, reaching $396,100.

The outcomes of these macroeconomic data releases will provide insights into inflation trends and economic expansion, which can impact the crypto markets. Crypto investors will closely analyze the data to assess the potential implications for their investment decisions.