Crypto is responsible for the impact this week in the pipeline with three US economic signals. The forecast will come from the impact of economic indicators on Bitcoin (BTC) and the growth of a wider market.
Meanwhile, Bitcoin’s prices continue to show strength, far above the $118,000 threshold despite the BTC’s advantage and lower sales concerns.
US economic signals to watch this week
Of the top three economic signals in the US to watch this week, the opening remarks from Federal Reserve Chair Jerome Powell at Tuesday’s Banking Conference.
Powell’s remarks will come a week after the US CPI (Consumer Price Index) Inflation showed an annual increase of 2.7% June.
The statement also comes more than a week before the next FOMC meeting, with bettors of interest to ensure that policymakers with a 95.3% chance will not change the rate.
So, traders are watching Powell’s remarks on economic signals, hoping to provide insight into the interest rate decisions scheduled for July 30th. However, even within this prediction, there are other concerns.
Powell faces political pressure from the Trump administration and cuts interest rates amid concerns that keeping interest rates high will undermine economic growth.
He maintains his attentional attitude, but some expect a possible resignation ahead of his term maturity, which is expected to end in May 2026.
The Fed’s chairman has been criticized by the White House for renovating the agency’s $2.5 billion building. Government officials are seeking an audit amid speculation that it could bring enough material to fire him for a cause.
The ouster or resignation of Jerome Powell as a Fed chair could be bullish for Bitcoin and Crypto, especially as it could mark a policy pivot towards rate reductions.
Reducing interest rates will improve liquidity, increase risk appetite, weaken Fiat and drive demand for Bitcoin as a hedge.
First unemployed claim
Another US economic signal to watch is the first unemployment claim, showing how many citizens first applied for unemployment insurance last week. This US economic indicator is important given the growing influence of the labor market as a Bitcoin macro.
The first unemployment claim for the week ending July 12th was 221,000. Based on MarketWatch data, Economists will increase to 229,000 for the week ending July 19th.
A surge in claims from the first unemployed, with the past 221,000 reading, could surprise the market for weakening jobs.
However, if the claims remain low, it suggests a strong labor market.
S&P Flash Service and Manufacturing PMI
In addition to the initial unemployed claims on Thursday, other US economic signals that can move Bitcoin this week are S&P Flash Services and Manufacturing PMI.
The service PMI, which reflects the dominant services sector, was 52.9 in June, signalling expansion, but slowed slightly from 53.7 in May. Meanwhile, the manufacturing PMI rose to a three-year high of 52.9 driven by stock accumulation amid tariff concerns.
MarketWatch data shows that July’s forecast suggests that the service’s PMI is 53.2 and the manufacturing’s PMI is just below 52.4, indicating potential softening in manufacturing.
Historically, strong PMI measures can boost confidence in traditional markets and divert capital from Bitcoin. On the other hand, when readings become weaker, it is possible that fuel reductions in fuel speeds can be fueled by supporting Bitcoin as a hedge against weakening of Fiat.
At the time of writing, Bitcoin had been trading at a modest 0.35% over the past 24 hours at $118,286. Analysts highlight the decline in Bitcoin’s advantage.
Bitcoin miners and whales have also dumped BTC, but the UK government is teasing them over the sale of Bitcoin. These factors could exacerbate volatility in the Bitcoin market this week.
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