This week could see significant volatility in the cryptocurrency market due to three major U.S. economic indicators: testimony from Federal Reserve Chair Jerome Powell, jobless claims data, and the PCE inflation index.
Cryptocurrency Market Overview: Bearish Sentiment Prevails
The cryptocurrency market is currently under pressure, with a 2.6% decline in total market cap over the past 24 hours. Here’s a quick look at weekly performance:
* **Bitcoin**: down 4.9% * **Ethereum**: down 14% * **XRP**: down 8.3% * **BNB**: down 4.8% * **Solana**: down 14.7% * **Cardano**: down 15.7% * **Dogecoin**: down 14% * **Tron**: down 1.6% * **Hyperliquid**: down 19.8% * **Stellar**: down 11.7% * **Pi Coin**: down 16.3%
The U.S. Economic Surprise Index, which measures how economic data compares to expectations, is currently at its lowest point since 2025. A declining index often signals growing uncertainty, which can reduce risk appetite and impact demand for cryptocurrencies.
Jerome Powell's Testimony: A Key Event for Bitcoin
On June 24, Federal Reserve Chair Jerome Powell will testify before Congress about U.S. economic policy, employment, and inflation. His speech could directly affect crypto prices.
* A **hawkish tone** may hurt Bitcoin and boost the dollar. * A **dovish tone** may support Bitcoin and weaken the dollar. * A **neutral stance** may cause short-term volatility.
In the past 14 days, Bitcoin has already dropped 3.5%, including a 0.8% decline in the last 24 hours, now hovering around $101,886.
Geopolitical concerns are also rising as Iran threatens to block the Strait of Hormuz, a vital oil supply route, which could influence global markets and Federal Reserve decisions.
PCE Inflation Index: The Fed’s Preferred Metric
The Personal Consumption Expenditures (PCE) Price Index is due on June 27. This is the Fed’s key inflation gauge.
* In April, PCE fell from 2.3% to 2.1%. * Current forecasts expect a rise back to 2.3%. * However, TEForecast estimates a smaller rise to 2.2%.
If PCE inflation beats expectations (above 2.3%), the Fed may delay rate cuts. This could strengthen the U.S. dollar and reduce investor interest in Bitcoin, leading to a further price drop.
The market direction this week will depend on how these three factors unfold. Powell's tone, jobless claims, and inflation figures will determine whether Bitcoin can regain momentum or face another sell-off.
