Bitcoin (BTC) was bolstered over the weekend, establishing two all-time highs (ATHs) between Saturday and Sunday. However, amid ongoing rally, this week’s four US economic signals will affect future price actions.
In addition to the institutional impact, US economic indicators can also determine whether Bitcoin prices will extend or derail the likelihood of its rise.
US economic signals to watch this week
Traders can take advantage of macro-specific volatility by front-running or trading the next event this week.
CPI
The US Consumer Price Index (CPI) is perhaps the most important economic signal of the week, scheduled for Tuesday, July 15th. Based on MarketWatch data, economists expect inflation to reach 2.7% in June, after the 2.4% recorded in May.
As reported by Beincrypto, Mayreading shows its first CPI increase since February. That is, readings above 2.4% on Tuesday indicate a continuation of this trend.
If CPI exceeds 2.4% in June, the market could put pressure on Bitcoin, expecting a more stringent Federal Reserve policy. Conversely, if you fall below 2.4%, you could see an increase in BTC based on previous rate reductions and gradual liquidity desires.
Nonetheless, waves of Fed speakers that are scheduled to speak on the same day could exacerbate volatility as investors monitor the Fed’s thoughts of windows.
PPI
Beyond CPI, which measures the average change in the price consumers pay for goods and services, the crypto market also needs PPI (producer price index) equipment.
This US economic signal tracks the average price changes that producers receive for their goods and services.
In May, PPI inflation rose at an annual rate of 2.6%. Similar to CPI, economists expect a modest surge at the June PPI, scheduled for Wednesday, July 16th.
A further increase in June’s PPI will advance potential inflation, raising fears of interest hikes. This can hurt Bitcoin in the short term if liquidity becomes severe. Conversely, lower PPIs ease concerns about inflation, reduced support rates, or slower policies.
This will increase Bitcoin as risk appeals and liquidity increases.
First unemployed claim
The first unemployment claim is significant Thursday. Labor market data is steadily overtaking inflation as Bitcoin’s next macroeconomic catalyst. As one of the gauges of economic growth, the initial unemployed claims could also affect the volatility of Bitcoin price.
In the week ending July 5th, 227,000 US citizens filed for unemployment insurance. Now, experts claim that the number of first unemployed people will increase to 233,000.
Rising claims indicate weakening the labour market and stimulate the economy by increasing expectations for Fed rate reductions. This is bullish for Bitcoin and crypto. This is because low interest rates weaken the dollar and increase the demand for risky assets like Bitcoin.
Consumer sentiment
Friday’s Consumer Sentiment Report is also a key US economic indicator that affects Bitcoin prices. The economists predict that they will arrive at 62.0 in July after reading this macro data previously on June 60.7.
The consumer sentiment index, which measures consumer trust, affects Bitcoin by reflecting economic optimism and pessimism. It impacts risk appeal and gives policy expectations.
In hindsight, the June report showed that consumer sentiment in the US was getting worse. Higher emotions beyond the June 60.7 reading could show economic strength, potentially reduce speed reduction odds, strengthen the dollar, and put pressure on BTC prices down.
Conversely, potentially low sentiment below the above levels raises expectations for the Fed’s mitigation that supports risky assets like BTC.
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