This week, we’re keeping an eye on several U.S. economic events that could influence Bitcoin’s price. These are key indicators that give us clues about the state of the economy, and they can shape how investors react to riskier assets like Bitcoin. Currently the price of Bitcoin hovers just above the $63,000 mark. Here is what to look out for in the coming days that might decide if Bitcoin will continue on another leg upwards.
Monday – Manufacturing and Services PMI
We’ve already seen the numbers for U.S. business activity. September’s data showed that while things stayed steady, prices for goods and services rose at the fastest rate in six months. This could hint at rising inflation down the line. The S&P Global U.S. Composite PMI, which tracks both manufacturing and services, came in at 54.4—just a tick down from 54.6 in August. When the PMI is above 50, it signals expansion. If the economy is growing, that could be positive for Bitcoin, as investors might turn to it as a hedge against inflation.
Tuesday – CB Consumer Confidence
Consumer confidence is something we watch closely. If people feel good about the economy, they’re likely to spend more. When spending is strong, speculative assets like Bitcoin can benefit. We’ll be watching to see if this index shows growing optimism, which could drive more investment interest in crypto.
Wednesday – New Home Sales
A strong housing market can be a sign of economic strength. If new home sales increase, it might reflect well on investor sentiment. When people feel good about the economy, they may be more willing to invest in assets like Bitcoin. It’s another factor that could lead to a boost in the market.
Thursday – U.S. Q2 GDP, Initial Jobless Claims and Fed Chair Powell’s Speech
Thursday is a big day. First, we’ll get the GDP numbers. Gross Domestic Product (GDP) tells us how the economy is growing. Strong growth often leads to higher confidence in overall stability, which could translate into more demand for Bitcoin as an alternative investment.
We’ll also be watching initial jobless claims, which give us a snapshot of the labor market. Fewer jobless claims point to a strong labor market. This tends to boost market confidence, and a strong economy can lead to bullish behavior across riskier assets like Bitcoin.
Jerome Powell’s speeches always matter. If he makes comments about potential interest rate changes or shares insights into the economic outlook, it can move the market. Bitcoin is sensitive to monetary policy. Any hints at rate changes could directly impact Bitcoin’s price, so we’ll be paying attention to what Powell says.
Friday – Core PCE Inflation and Consumer Sentiment
On Friday, the Core PCE inflation data will be key. This index excludes food and energy and is closely watched by the Fed when deciding on interest rates. If inflation comes in lower than expected, it could reduce the likelihood of further rate hikes. Lower rates usually lead to more liquidity, which is often good news for Bitcoin’s price.
We’ll also get a look at consumer sentiment on Friday. This tells us how people feel about spending, saving, and the overall economy. If the outlook is positive, it could indirectly boost interest in Bitcoin as people feel more comfortable taking on riskier investments.
Keep checking in with us here at HowToBuyBitcoin.org as we track the latest developments and news related to Bitcoin.