With key inflation data scheduled for release this week, Benzinga takes a look at what cryptocurrency traders predict its impact to be.

What Happened: CrypNuevo predicts an aggressive market move in response to impending inflation data. He states, "I have the feeling that we'll just push towards one direction in an aggressive way," acknowledging the possibility of being wrong in his assessment.

Considering Bitcoin's (CRYPTO: BTC) recent price action, he notes the fact that range lows are acting as support after a deviation, which he considers a good sign.

Another, crypto trader Kevin shares his thoughts on the current market sentiment, the impact of macroeconomic factors and potential scenarios for Bitcoin and altcoins. He sees the current Bitcoin price action as "okay" but "not great and not bad." Kevin attributes this ambiguity to the influence of macroeconomic policy and data, which could potentially sway the market in either direction. "It's a toss-up on which way it breaks due to Macro policy and data," he notes.

While the altcoins chart looks "hideous" on the daily timeframe, the weekly and higher timeframes for Total 2-3-Others still lean more bullish than bearish.

He cautions, "If CPI comes in bad this week, I think Altcoins are in for a very bad time and I believe BTC will break down and we could see 50K. If it comes in better than expected I see the opposite occurring."

Also Read: Bitcoin Up 3%: What Will Inflation Data And Powell Speech Bring This Week?

Why It Matters: The crypto traders' comments highlight the significant influence that macroeconomic factors, such as PPI, and CPI data, can have on the cryptocurrency market.

As investors eagerly await the CPI and PPI data, the market remains in a state of uncertainty, with the potential for a sharp move in either direction. While the last three consecutive releases of inflation rates surpassed expectations, traders are awaiting the CPI report on May 15, which is forecasted (3.4%) to come in below the prior month (3.5%). The CPI index is predicted to decelerate from 0.4% to a 0.3% monthly pace.

Goldman Sachs economists Manuel Abecasis and Spencer Hill predict a 1.6% rise in car insurance prices, while health insurance costs are expected to stabilize. Rent inflation has slowed to 0.37% while owner's Equivalent Rent (OER) inflation is expected to remain strong at 0.45%

Following the last inflation data (CPI) in mid-April, which saw a marginal increase in CPI data while PPI data saw a significant increase, Bitcoin traded 2.4% higher one day after the meeting, while Ethereum (CRYPTO: ETH) and Dogecoin (CRYPTO: DOGE) gained 0.71% and 0.91%, respectively. However, after the PPI data on the next day, there was a drop across the crypto board.

At the time of writing, Bitcoin is trading at around $62,800, up 1.9% on the day. Ethereum and Dogecoin are up 0.1% and 6%, respectively.

What's Next: The influence of Bitcoin as an institutional asset class are topics expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.

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