Key US economic data to come that could impact the crypto market

This week, several key US economic reports could influence the direction of crypto markets, which remain highly sensitive to broader macroeconomic trends.

Bitcoin is currently hovering around $95,000, with upcoming economic data expected to determine its next big price move.

Consumer Confidence

On Tuesday, the University of Michigan will release its consumer confidence index, which is expected to drop slightly from 104.1 to 102.4. While consumer confidence doesn’t typically move crypto markets as much as events like the Fed raising interest rates, it does reflect sentiment around spending and investment, which could affect Bitcoin.

Initial jobless claims

Thursday’s jobless claims data, reflecting new filings, offers a snapshot of the labor market. A rise in the number of claims signals economic weakness, which often causes investors to shy away from riskier assets like Bitcoin. Conversely, a drop can indicate a strong job market, which boosts confidence in riskier investments like cryptocurrencies.

GDP growth

The GDP report, which is also due on Thursday, could affect BTC’s appeal. Stronger-than-expected GDP (above the projected 2.3% for Q4 2024) could drive investors towards equities, anticipating tighter Federal Reserve policies. A weaker GDP could heighten recession fears and boost Bitcoin as a store of value.

PCE data

Friday’s personal consumption expenditures (PCE) report, a key inflation gauge for the Fed, could impact the price of the leading digital asset. A higher-than-expected PCE could dampen hopes of a rate cut, leading to a drop in the price of Bitcoin. A lower PCE could spark optimism for interest rate cuts, potentially boosting the price of the cryptocurrency.

Bitcoin remains sensitive to macroeconomic trends and investors should be prepared for potential volatility this week.