Upcoming U.S. Economic Reports Could Spark Volatility in Bitcoin Market

The effect of US economic data on cryptocurrencies, especially Bitcoin, is becoming more and more obvious.

This week, three key US macroeconomic reports are expected that could cause potential volatility in the crypto market.

Unemployment data for the week ended October 19 will be released on Thursday, revealing how many people filed for unemployment. Due to ongoing recovery efforts from the hurricanes, which caused power outages and work stoppages, unemployment is expected to remain high.

Unemployment claims are projected at about 245,000. If the number exceeds that forecast, it could signal a weakening labor market, which could affect the Federal Reserve’s approach to interest rates.

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The U.S. Purchasing Managers’ Index (PMI) will also be closely watched for signs of economic health. At the previous measurement of 47.3 points, it is expected to rise to 47.5 points, but that would still imply a contraction in a sector whose momentum has been going on for more than a year.

A reading below 50 continues to suggest a contraction, while anything above that value would indicate an expansion, which could encourage interest in Bitcoin as a potential hedge against inflation.

Alexander Zdravkov