Will US Economic Data Push Bitcoin Higher?
Crypto market participants, including traders and investors, should be ready for multiple U.S. economic data this week, which could impact their portfolios. Key events of the week can drive volatility After last week’s US CPI (Consumer Price Data).
Meanwhile, U.S. Presidents’ Day will shut down the market on Monday, but Bitcoin (BTC) will be able to trade throughout the process.
U.S. economic events on the encrypted calendar this week
As the impact of U.S. economic data on crypto markets remains obvious, traders and investors must pay attention to the following data this week.
January Fomc meeting minutes
The Federal Reserve will release minutes of the FOMC (Federal Open Market Committee) meeting in January on Wednesday, February 19. This is one of the most important U.S. economic data this week, as policymakers say it could help the market further measure the interests of the Federal Reserve. Rate prospect.
Time has come after the latest report says CPI inflation Jumped up One month. This effectively marks bad news in the short term, with the cryptocurrency market showing negative sentiment. However, there are no major signs of re-acceleration of inflation.
Fed Chairman Jerome Powell told Senate Banking Committee He is not in a hurry to lower interest rates. President Donald Trump urged greater tax cuts to deal with high inflation, but Powell remained firm.
Market participants will now make further adjustments as they wait for other policy updates. January’s FOMC meeting minutes could provide some insights on the matter, especially addressing whether the tax cuts are coming in or policy makers tend to tilt towards more hawkish signals.
“Minutes are widely expected Mirror The Federal Reserve testified Powell to the Senate economy last week. shared.
Initial Unemployment Statement
In addition to the minutes of the FOMC meeting in January, the cryptocurrency market will also watch the initial unemployment claims Thursday to gain insight into the U.S. labor market. In the week ending February 15, there were 213,000 U.S. citizens filing new applications to unemployment insurance.
The print missed the initial estimate, down from the previous week’s revised version of 220,000. According to the U.S. Department of Labor (DOL), the report highlights the seasonally adjusted insurance unemployment rate of 1.2%. MarketWatch data shows that the median forecast for initial unemployment claims this week is 215,000.
In Thursday’s report, higher initial unemployment requirements suggest an increase in economic hardship and a weaker labor market, which could lead to a decrease in consumer spending. The slowdown prompted the Fed to consider cutting speeds to stimulate the economy.
As interest rates drop, borrowing becomes cheaper, which may increase spending and investment. This situation prefers Bitcoinbecause lower interest rates can increase the demand for alternative assets.
Consumer sentiment
The U.S. Consumer Sentiment Index, especially the preliminary report, reflects consumers’ overall confidence and optimism about the economy. The University of Michigan will release this data on Friday.
Active reading on Friday could increase optimism in financial markets, including cryptocurrencies. As investors seek assets with growth potential, this could lead to demand for Bitcoin.
Similarly, if the consumer is in a strong mood, it may indicate that the consumer is more willing to spend and take risks. This positive outlook can translate into increased risk appetite among investors, potentially leading them to allocate more funds to cryptocurrencies like Bitcoin.
However, it is impossible to ignore consumer sentiment data often contains information about inflation expectations. Therefore, Wednesday’s FOMC meeting minutes will be crucial. If consumers expect higher inflation, they may look for stores of alternative value to protect their wealth. Bitcoin, commonly known as “Digital Gold,” as a hedge against inflation, may benefit.
But before economic data, Bitcoin (BTC) was trading at $95,984, and Bitcoin (BTC) has dropped 1.58% since the opening of Monday’s meeting.
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