Crypto markets are bracing for a pivotal week with several major catalysts set to reshape sentiment and volatility. The convergence of economic data releases and policy developments will determine near-term direction.

Tuesday brings two critical inflation metrics: Consumer Price Index (CPI) and Core CPI readings. A hotter-than-expected print signals persistent inflation, potentially delaying interest rate cuts and triggering risk-off sentiment—bearish for digital assets. Conversely, cooler inflation data would weaken the dollar and provide breathing room for the crypto sector to rally.

Wednesday compounds the uncertainty with Core Producer Price Index (PPI) release paired with a Supreme Court ruling on tariffs. The PPI gauge offers early signals on inflation pressures trickling through supply chains, while tariff clarity could reshape broader market risk appetite. Traders should expect exaggerated moves as these catalysts unfold—position sizing becomes crucial in such volatile periods.