The cryptocurrency market starts the week under pressure, with Bitcoin dropping below $113K and Ethereum remaining steady around $4,700. Traders are closely watching key economic signals from the U.S.
Economic Signals This Week
This week, traders are focusing on three important economic indicators from the U.S. that could affect cryptocurrency prices. The first key signal will be the consumer confidence report, followed by jobless claims data and finally the Personal Consumption Expenditures (PCE) inflation report. These indicators can significantly change the dynamics of the crypto market.
Consumer Confidence and Sentiment
On Tuesday, new consumer confidence data is expected to dip slightly from last month, hinting at weaker household spending power. Following this, consumer sentiment data will be released, which also shows little improvement projected. Both readings remain near crisis levels, reflecting ongoing pressure on American consumers.
Jobless Claims and PCE Inflation
Weekly jobless claims also remain a key signal. Economists expect new filings to ease slightly, indicating labor market strength. Additionally, the publication of continuing claims data highlights that more Americans are struggling to find jobs. Finally, the PCE inflation report is worth noting, with forecasts suggesting an increase to 2.9%, which may reduce chances of aggressive easing from the Fed.
As Bitcoin has dropped more than 2% and Ethereum remains steady, traders brace for potential volatility. Future movements in the crypto market largely depend on the Fed's analysis of the U.S. economy.
