Every new week brings its share of events that could shake up the crypto market. Like this start of the weekly cycle, some crucial economic data is already shaking up investors. This week, the US retail sales figures and the imminent Fed decision on interest rates are captivating traders’ attention. These elements could play a decisive role in the volatility of Bitcoin and crypto in general.
Economic Factors Could Shake Crypto Market This Week
Crypto market traders and investors are holding their breath this week as several major U.S. economic indicators are expected. In addition to these 3 key indicators, these new data will likely influence the trajectory of Bitcoin (BTC), which is currently hovering between $57,000 and $60,000.
Between retail sales figures, the Fed's interest rate decision, and unemployment claims, the crypto market is still shaking.
US Retail Sales: A Key Indicator for Crypto
U.S. retail sales data, due Tuesday, will be key to assessing the health of the U.S. economy. In July, An unexpected 1% increase took everyone by surprise, contrasting with the 0.2% decline in JuneA further sustained rise would signal a solid recovery in consumption, which could push risk assets like cryptos higher.
A weak figure, on the other hand, would revive the recession fearsdampening investors' enthusiasm for Bitcoin and the like. Here's what traders are watching closely:
- The performance of American consumption;
- The impact on risky assets like BTC;
- Global economic forecasts.
The Fed’s decision: a key moment for Bitcoin
On Wednesday, the spotlight will turn to the Fed's highly anticipated interest rate decision. With inflation having eased slightly, expectations are for a decline, but by how much? The suspense is at its height: ua 50 basis point reduction – which would be an imminent danger for bitcoin – could surprise the markets and trigger increased volatility, while a more moderate drop of 25 points would be perceived as more “predictable”.
For Bitcoin (BTC), which recorded an increase of almost 7% last weekthis decision could make all the difference.
The market, always sensitive to Fed announcements, is preparing to react. Some observers like JPMorgan are advocating a rapid decline, but others remain cautious.
As Mati Greenspan, CEO of Quantum Economics, has stated, “ a 0.25% drop would be seen as a favorable signal for risky assets such as crypto “.
The US Job Market: A Barometer of Risk
Last key indicator to follow: US unemployment benefit claims. Although the labor market is showing signs of slowing, Unemployment rates remain relatively low, holding at 4.2% in AugustA significant deterioration could lead to a change in sentiment among investors, weighing on market sentiment.
However, A still strong job market could support a “soft landing” scenariowhere the economy lands smoothly without much turbulence. Bitcoin and other crypto assets would then benefit from a more favorable environment, without the risk of an immediate recession.
Volatility and Bitcoin, two inseparable concepts. To navigate these rough seas, it is crucial to carefully monitor economic factors and market reactions.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
