Inflation is anticipated to rise as indicated by the Producer Price Index (PPI) and Consumer Price Index (CPI) data releases this week.
Bitcoin and crypto asset prices may face selling pressure due to the expected increase in inflation.
The data suggests a rise in PPI by 3.3% YoY in December 2024 and an increase in CPI to 2.9% YoY, moving away from the Fed's 2% target.
The likelihood of no rate hikes during the first half of the year could weigh on Bitcoin price gains, while potential upside drivers may come from Bitcoin-related legislation approval.