Bitcoin New ATH This Week? 4 Key US Economic Events to Watch
Bitcoin (BTC) strengthened over the weekend, establishing two all-time highs (ATH) between Saturday and Sunday. However, amid the ongoing rally, four US economic signals this week will influence the price action going forward.
Besides institutional influence, US economic indicators can also determine whether Bitcoin’s price extends or derails its upside potential.
US Economic Signals To Watch This Week
Traders can capitalize on macro-specific volatility this week by front-running or trading around the following events.
CPI
The US CPI (Consumer Price Index) is perhaps the most important economic signal this week, due Tuesday, July 15. Based on data on MarketWatch, economists anticipate inflation to come in at 2.7% for June, after the 2.4% recorded in May.
As BeInCrypto reported, the May reading signified the first CPI increase since February, which means any reading above 2.4% on Tuesday would indicate a continuation of the trend.
If June CPI rises above 2.4%, markets may expect tighter Federal Reserve (Fed) policy, pressuring Bitcoin. Conversely, a drop below 2.4% could boost BTC on hopes of earlier rate cuts and looser liquidity.
Notwithstanding, a wave of Fed speakers scheduled to speak on the same day could exacerbate volatility, as investors would monitor their statements for a window into what the Fed is thinking.
PPI
Beyond CPI, which measures the average change in prices consumers pay for goods and services, crypto markets must also brace for PPI (Producer Price Index).
This US economic signal tracks the average price change received by producers for their goods and services.
In May, PPI inflation rose at an annual rate of 2.6%. Like the CPI, economists anticipate a modest surge in the June PPI due on Wednesday, July 16.
If the June PPI increases further, it signals potential inflation ahead, raising rate hike fears. This can hurt Bitcoin in the short term as liquidity tightens. Conversely, falling PPI would ease inflation worries, support rate cuts, or looser policy.
This often boosts Bitcoin as risk appetite and liquidity rise.
Initial Jobless Claims
The initial jobless claims will be crucial on Thursday. Labor market data steadily overtakes inflation as Bitcoin’s next macroeconomic catalyst. As one of the gauges of economic growth, the initial jobless claims could also influence Bitcoin price volatility.
In the week ending July 5, 227,000 US citizens filed for unemployment insurance. Now, experts project initial jobless claims to increase to 233,000.
Rising claims signal a weakening labor market, increasing expectations of Fed rate cuts to stimulate the economy. This is bullish for Bitcoin and crypto as lower interest rates weaken the dollar and boost demand for risk assets like Bitcoin.
Consumer Sentiment
Friday’s consumer sentiment report is also a key US economic indicator with implications for Bitcoin price. Economists project this macro data to arrive at 62.0 for July after a previous reading of 60.7 in June.
The Consumer Sentiment Index, measuring US consumer confidence, impacts Bitcoin by reflecting economic optimism or pessimism. It influences risk appetite and Fed policy expectations.
In hindsight, the June report showed that US consumer sentiment is worsening. High sentiment above June’s 60.7 reading would signal economic strength, potentially reducing rate cut odds and strengthening the dollar, which can pressure BTC prices downward.
Conversely, low sentiment, potentially below the level above, would boost expectations of Fed easing, supporting risk assets like BTC,
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