On January 8th, macroeconomic data from Europe and the US was released, which has a significant impact on the short-term trends of cryptocurrencies like Bitcoin and Ethereum. How do these macroeconomic indicators transmit their effects to the crypto market? Let's analyze.

In Europe, attention should be paid to Swiss CPI, Eurozone PPI/unemployment rate and business climate index, as well as France's trade balance. In simple terms, rising inflation or weak economic data tend to increase the European Central Bank's tightening expectations, leading to a stronger US dollar and putting downward pressure on crypto prices. Conversely, weak data can trigger expectations of easing, weakening the dollar and potentially causing crypto assets to rebound. France's trade balance also signals the situation—widening deficits indicate a sluggish Eurozone recovery and lower risk appetite, leading to a cold reception for cryptocurrencies; surpluses have the opposite effect and are positive for the market.

Although UK house price indices may seem distant from the crypto market, they actually reflect global risk sentiment. Weak housing data puts pressure on the UK economy, increases global risk aversion, and tends to lead to crypto sell-offs. Conversely, rising house prices have the opposite effect.

In the US, the most important data are employment and trade figures. Weak employment data can raise expectations of Fed rate cuts, easing dollar liquidity, which generally benefits the crypto market. Strong employment data, on the other hand, signals a more hawkish Fed stance, which is unfavorable for crypto prices. Narrower trade deficits increase dollar demand, putting pressure on crypto prices; wider deficits can provide support.

Additionally, attention should be paid to US wholesale sales, EIA natural gas inventories, and inflation expectations. Declining wholesale sales indicate economic weakness, pressuring risk assets and affecting the crypto market. Rising inflation expectations reinforce the Fed's rate hike outlook, which is negative for cryptocurrencies; the opposite scenario opens up room for rate cuts and is positive for the market.

Overall, macroeconomic environment changes influence crypto prices primarily through three channels: the US dollar trend, central bank policy expectations, and global risk appetite.