tl;dr
As the Good Friday holiday approaches, crypto investors are closely watching four key US economic indicators set to be released this week. These indicators have the potential to impact digital asset prices. The first indicator, Consumer Inflation Expectations, is anticipated to reveal Americans' exp...
As the Good Friday holiday approaches, crypto investors are closely watching four key US economic indicators set to be released this week. These indicators have the potential to impact digital asset prices. The first indicator, Consumer Inflation Expectations, is anticipated to reveal Americans' expectations regarding price changes over the next year. Heightened inflation fears often drive interest in Bitcoin as a hedge, but if expectations spike too high, it could pressure risk assets like crypto.
The second indicator, US Retail Sales, measures consumer spending and typically signals consumer confidence, which can impact crypto prices. The third indicator, Industrial Production, tracks changes in manufacturing and utilities output, with weak production often strengthening the decentralization narrative and boosting interest in blockchain projects. The final indicator, Initial Jobless Claims, reflects new unemployment filings and offers insight into labor market health. A spike in claims could amplify recession fears, potentially driving inflows to Bitcoin as a store of value. However, altcoins might suffer from risk aversion. With Good Friday approaching, holiday trading volumes may be low, leaving prices susceptible to amplified reactions.
As the Good Friday holiday approaches, crypto investors are eyeing four key US economic indicators set to be released this week, each with the potential to sway digital asset prices. From Consumer Inflation Expectations to Initial Jobless Claims, here is how these economic data could influence Bitcoin (BTC) and crypto prices this week.
CONSUMER INFLATION EXPECTATIONS
Due Monday, the Federal Reserve Bank of New York’s March Consumer Inflation Expectations survey will reveal how Americans anticipate price changes over the next year. Recent data showed expectations rising to 3.1% in February from 3% in January, signaling growing concerns about inflation. The consensus forecast among economists is another rise to 3.3%. Meanwhile, University of Michigan consumer survey shows inflation expectations soaring to levels last seen in 1981. This, coupled with jittery markets after rising US Treasury yields on Friday, amplifies the Fed’s dilemma. For crypto, heightened inflation fears often drive interest in Bitcoin as a hedge, given its fixed supply. However, if expectations spike too high, fears of tighter Federal Reserve (Fed) policy could pressure risk assets like crypto. If volatility spikes, stablecoins like USDT could see increased trading volume as investors seek refuge. Conversely, a lower-than-expected reading might bolster altcoins, encouraging risk-on sentiment.
US RETAIL SALES
Wednesday’s US Retail Sales report for March, measuring year-over-year consumer spending, is a critical gauge of economic health. Strong retail sales typically signal consumer confidence, boosting equities and potentially dragging crypto prices down as investors favor traditional markets. Weak sales, however, might reinforce recession fears, pushing capital toward decentralized assets like Bitcoin, Ethereum (ETH), or Solana (SOL). Crypto’s correlation with consumer sentiment has grown, with Bitcoin often reacting to spending trends. Therefore, it is poised for volatility this week.
INDUSTRIAL PRODUCTION
The Federal Reserve’s Industrial Production report for March, also out Wednesday, tracks monthly changes in manufacturing, mining, and utilities output. For crypto, weak industrial production often strengthens the decentralization narrative, boosting interest in blockchain projects. However, persistent declines might fuel broader market panic, hitting speculative tokens hardest. Strong production data could stabilize markets, reducing crypto’s safe-haven appeal but supporting DeFi platforms tied to real-world assets. Bitcoin miners, reliant on energy costs, may face pressure if utilities output falters.
INITIAL JOBLESS CLAIMS
Thursday’s Initial Jobless Claims report, reflecting new unemployment filings, offers a snapshot of labor market health. A spike in claims could amplify recession fears, driving inflows to Bitcoin as a store of value. However, altcoins might suffer from risk aversion. With Good Friday looming, however, liquidity may thin, amplifying price moves. Holiday trading volumes tend to be low, leaving prices susceptible to amplified reactions.
Bitcoin (BTC) Price Performance
BeInCrypto data shows Bitcoin was trading for $84,962 as of this writing, up by a modest 0.35% in the last 24 hours.