The impact of US economic data on the cryptocurrency market, especially Bitcoin, is growing. Many see Bitcoin as a safe choice during economic uncertainty. Cryptocurrency traders should prepare for market shifts as the US releases three key economic reports that may affect digital asset values.
Initial Jobless Claims and Cryptocurrency Prices
Unemployment claims have increased this October, with the upcoming report for the week ending October 19 expected to show significant numbers due to climate-related disasters. The median forecast is 250,000 claims, with estimates around 245,000 due to ongoing recovery efforts after hurricanes.
If claims exceed expectations, this may signal a weak job market, affecting perceptions of the Federal Reserve’s interest rate plans. An increase in claims could lead to speculation about interest rate cuts, possibly benefiting Bitcoin. Conversely, lower claims could suggest a strengthening economy, boosting demand for riskier assets like Bitcoin.
US Manufacturing PMI
The US will release manufacturing data on October 24, shedding light on this crucial sector’s health. Economists anticipate a slight recovery, with predictions of a PMI rise from 47.3 to 47.5. Any reading below 50 indicates contraction, with a significant negative streak seen in recent months.
A PMI reading above 50 would indicate growth in manufacturing, a positive sign for the economy.
US Services PMI
The Services PMI, expected to dip slightly to 55, will provide further insights into the services sector.
Investors are paying close attention to these economic indicators due to their growing correlation with cryptocurrency trends. Positive jobs and PMI data could boost sentiment and prices for Bitcoin and other digital assets.
This week is quiet on the US economic data front, but Neil Sethi advises investors to take full advantage while preparing for potential volatility next week.
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