US Economic Events Impacting Bitcoin Sentiment This Week
This week, several key U.S. economic events are expected to impact Bitcoin's price, as market sentiment responds to new data. Key releases such as consumer confidence, GDP, and jobless claims could drive increased volatility in the crypto market, influencing investor behavior and Bitcoin’s outlook.
The cryptocurrency market is set to be influenced by several key U.S. economic data releases this week, with Bitcoin’s price potentially responding to the news. After a quieter 2023, the impact of U.S. macroeconomic factors on Bitcoin is again in focus. Here are the five events to watch:
Consumer Confidence
On Tuesday, January 28, the U.S. will release its consumer confidence survey, which provides insight into spending trends and overall sentiment. A rise in consumer confidence could indicate higher spending and economic activity, potentially driving more investments into Bitcoin.
Conversely, a decline may signal reduced spending, prompting a dovish Fed stance and possibly benefiting Bitcoin as a hedge against inflation.
FOMC and Fed Chair’s Speech
The Federal Open Market Committee (FOMC) will decide on interest rates Wednesday, January 29. The CME FedWatch tool shows a 99.5% probability of a 25-basis-point rate cut, which suggests no major changes but increased market volatility. Fed Chair Jerome Powell’s press conference will be closely watched for market-moving insights that could influence Bitcoin’s direction.
GDP Report
On Thursday, January 30, the U.S. will release its GDP report. A strong GDP reading could indicate a growing economy, leading to more investments in risk assets like Bitcoin. A weaker GDP, however, could shift sentiment and prompt a decline in Bitcoin prices, at least in the short term.
Initial Jobless Claims
The jobless claims report, also on Thursday, will provide a snapshot of the U.S. labor market. A higher-than-expected claims figure could indicate economic instability, leading to more interest in alternative assets like Bitcoin. A decrease in claims might signal a stronger labor market and lead to less demand for Bitcoin as a safe haven.
Personal Income and PCE Index
On Friday, the U.S. Bureau of Economic Analysis will release data on personal income, spending, and the PCE index. Weaker income and spending could signal economic slowdown, prompting the Fed to pause rate hikes, which may push more investors toward Bitcoin.
A higher core PCE index, which indicates inflationary pressures, could increase demand for Bitcoin as an inflation hedge.
Looking Ahead: As these events unfold, Bitcoin’s price could see increased volatility. Currently, Bitcoin is trading at $100,355, down almost 5% since the start of the week.
