Cryptocurrency traders have three U.S. economic signals to watch this week. After the holiday weekend, these signals could influence the direction of Bitcoin (BTC) price this week.
Amid the growing attention on Ethereum (ETH), US economic indicators can also influence market sentiment, as happened with Jerome Powell’s speech at Jackson Hole on Friday.
US economic events this week
The following US economic signals and data may impact the portfolios of crypto traders and investors this week.
US economic signals. Source: Rimac CapitalConsumer confidence and psychology
Two economic events on Monday and Friday will shed light on consumer optimism, or lack thereof. Economists expect the U.S. Consumer Confidence Index, due Tuesday, to fall slightly to 96.5 in August, down from 97.2 in July, according to Market Watch data.
Meanwhile, the Consumer Sentiment report will be released on Friday. Economists expect the US Consumer Sentiment in August to hold steady at 58.6.
Meanwhile, analysts say the crisis is hitting US consumer sentiment, with a reading of 58.6 one of the lowest this century.
Weaker confidence implies weakening consumer purchasing power, which could put pressure on risk assets, including cryptocurrencies. Similarly, a stable sentiment index suggests caution among households, reinforcing a fragile economic outlook.
These indicators are important for the Bitcoin and cryptocurrency markets because they shape overall risk sentiment. Together, these indicators shape risk appetite and often spill over into the Bitcoin and cryptocurrency markets.
For traders, weaker consumer indicators could spur bets on Fed easing, indirectly supporting Bitcoin. Conversely, stronger indicators typically boost stocks, pulling liquidation out of digital assets in the short term.
Initial unemployment claims
Another US economic signal this week is initial jobless claims, which is being watched closely as labor market data becomes a fundamental factor for Bitcoin .
In the week ending August 16, 235,000 Americans filed for unemployment benefits. However, in the week ending August 23, experts predict that the number of applications will drop to 230,000.
Meanwhile, data also show that unemployed Americans are taking longer to find new jobs. Continuing unemployment claims have steadily risen to new highs since 2021.
If jobless claims fall below the previous level of 235,000, this would indicate the sustainability of the labor market, potentially reducing bets on a Fed rate cut and affecting Bitcoin’s short-term bullish potential.
However, the continued rise in claims could indicate deeper cracks in employment. This discrepancy makes the cryptocurrency market sensitive to macro changes, balancing growth optimism with recession risks and potential liquidation shifts.
PCE
Another US economic data to watch is the PCE (Personal Consumption Expenditures), which tracks consumer spending on goods and services.
Indeed, MarketWatch data shows economists forecast a headline reading of 2.6% YoY while core PCE is expected to be 2.9%, slightly higher than July's 2.8%.
A higher core PCE of 2.9% suggests Dai inflation, which could reduce the chances of a Fed rate cut. That could put pressure on Bitcoin and cryptocurrencies in the short term by tightening liquidation.
However, Dai inflation could also restore Bitcoin's long-term appeal as a hedge against currency decline .
Bitcoin (BTC) Price Performance. Source: BeInCryptoAt the time of writing, Bitcoin is trading at $112,579 , down more than 2% over the past 24 hours. Meanwhile, Ethereum is trading at $4,711 , after testing new highs over the weekend.
