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.
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.
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.
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.
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.
Tether is deepening its involvement in the tokenized gold space by introducing a new version of its gold-backed stablecoin—XAUt0—on The Open Network (TON).
Robinhood has officially announced the acquisition of Bitstamp, one of Europe’s longest-standing digital asset exchanges.
Ripple’s RLUSD stablecoin has received the green light from the Dubai Financial Services Authority (DFSA), paving the way for its use in the Dubai International Financial Centre (DIFC).
Binance founder Changpeng Zhao is once again stirring innovation in crypto, this time calling for a new kind of decentralized exchange (DEX) that prioritizes privacy for large-scale traders.