Macroeconomic Data to Test Bitcoin’s $100,000 Level This Week
Traders and investors are in for a wild week in the cryptocurrency space starting on Monday, with multiple key macroeconomic data in the pipeline that could impact their portfolios.
Meanwhile, Bitcoin (BTC) remains above the $100,000 mark. Whether this key level serves as support will depend on how traders react to this week’s upcoming economic data.
donald trump inauguration
Monday, January 20, is Martin Luther King Jr. Day in the United States. Nonetheless, this is an important day for cryptocurrency market players in the country because Donald Trump’s inauguration. Trump promised to sign a series of deals on his first day in office Executive Orders Helping Industry.
In the run-up to the election, Trump promised a lax approach to regulators, especially when it comes to cryptocurrencies, which was a cornerstone of his campaign. As such, the return of a pro-crypto candidate to the White House has fueled speculation about a potential positive regulatory shift. Against this background, it emerged Increased interest in Bitcoin among U.S. investors.
Given that markets will be closed for a holiday on Monday, the impact of this key development will only impact markets the following day. Still, some investors continue to remain cautious, bracing for impacts in either direction.
“Trump’s inauguration will either be a huge sell-off news or a complete middle of the curve and of course we’ll go higher,” one user expressive.
Number of people filing for unemployment benefits for the first time
Thursday’s initial jobless claims will reveal how many U.S. residents filed for unemployment benefits last week, providing new insights into the health of the labor market.
In the previous report, initial jobless claims exceeded market expectations and rose to 217,000 for the week ended January 10. The report missed preliminary expectations and was up from 203,000 the previous week.
If the trend of rising unemployment claims continues, it will continue a trend of economic hardship and labor market weakness. This could lead to reduced consumer spending and consumer confidence, thereby damaging various financial markets, including Bitcoin and cryptocurrencies.
When jobless claims increase, it indicates that more people are out of work or unable to find work. This reduces disposable income, which in turn reduces investment in assets such as Bitcoin.
Bank of Japan may raise interest rates
The other main focus this week is the Bank of Japan’s interest rate decision and economic outlook report on January 24. A rate hike could signal a shift in global liquidity dynamics, putting pressure on carry trades.
“If they raise rates (which they probably will), global markets will feel it. Including cryptocurrencies,” one user on X shared.
A Bloomberg survey showed that most economists believe Japan will raise interest rates, which could trigger market turmoil. However, the decision hinges on whether Trump’s inauguration would cause market disruption.
In this absence, the Bank of Japan may reiterate its commitment to further interest rate hikes if the economy maintains its recovery, Reuters reported on Friday, citing people familiar with the matter.
“Bitcoin could see a sharp 50% drop in 7 days. This would fit perfectly with a potential 1929 flash crash pattern following the Bank of Japan’s January 24 interest rate decision,” another user on X joke.
Cypress Demanincor, another popular user on
“Everyone’s attention is focused on the next big market move with Trump’s inauguration, when really the bigger force to consider is the possibility that the Bank of Japan might raise interest rates. If they don’t, then We shouldn’t have any serious concerns until March, though, there are things to be aware of and mentally prepared for when managing risk in your portfolio,” the researchers said. explain.
It is widely believed that the Bank of Japan’s potential decision to raise interest rates could affect global financial strategies such as yen carry trades. In this strategy, investors borrow Japanese yen at low interest rates to invest in high-yielding assets. This could disrupt liquidity and impact global risk assets, potentially overshadowing the colloquial “Trump rally.”
Bitcoin is known for being sensitive to changes in the global economy. A rate hike by the Bank of Japan could lead to a sell-off in risk assets including Bitcoin. This is because investors need to cover their positions in the yen carry trade, which can cause prices to rise volatility In Pioneer Cryptocurrency.
consumer confidence
Also crucial is Friday’s U.S. consumer confidence report, which provides an overall measure of how individuals feel about their finances and the overall economy. Positive consumer sentiment can boost confidence in the economy and potentially increase investment in assets like Bitcoin. On the other hand, negative sentiment could lead to a decline in investor confidence and a shift to safe-haven assets, which could impact Bitcoin prices.
BeInCrypto data programme As of this writing, Bitcoin is trading at $102,461, down 2.15% since Monday’s open.
Disclaimer
follow trust project BeInCrypto is committed to fair and transparent reporting. This news article is designed to provide accurate and timely information. However, readers are advised to independently verify the facts and consult a professional before making any decisions based on the content of this article. Please note that our terms and Conditions, privacy policyand Disclaimer Updated.
