Here Are 4 US Economic Signals That Could Move Bitcoin This Week

Here are four critical US economic indicators this week could significantly move Bitcoin's price, testing the cryptocurrency's sensitivity to macroeconomic shifts.

As crypto markets enter the second week of July, four key US economic indicators stand poised to potentially drive Bitcoin's price and overall market sentiment.

Consumer Credit

Tuesday's consumer credit report emerges as a critical indicator. Economists forecast a $10 billion rise following April's $17.87 billion increase. The data could provide insights into consumer confidence and spending power. Notably, declining credit levels might redirect capital towards speculative assets like Bitcoin, with the cryptocurrency potentially serving as a hedge against economic uncertainty.

FOMC Minutes

Wednesday's Federal Open Market Committee (FOMC) meeting minutes will offer a crucial window into monetary policy direction. With inflation rising to 2.4% annually in May, the Federal Reserve remains focused on its 2% target. The minutes could significantly impact Bitcoin's trajectory.

A hawkish tone suggesting tighter policy might pressure Bitcoin's price, potentially strengthening the US dollar. Conversely, a dovish outlook indicating potential rate cuts could boost risk appetite, driving capital into cryptocurrencies. The CME FedWatch Tool currently shows a 95.3% chance of steady interest rates at the next meeting.

Initial Jobless Claims

The week's jobless claims data will provide another economic pulse point. Economists anticipate a modest increase to 235,000, up from the previous week's 233,000. Rising claims could signal economic softening, potentially boosting Bitcoin as traders anticipate future rate cuts. Conversely, lower claims might strengthen the dollar, putting downward pressure on crypto prices.

Digital Asset Tax Policy Hearing

A House Ways and Means Oversight Subcommittee hearing on "Making America the Crypto Capital of the World" could provide additional market context. The session will focus on developing a 21st-century tax policy framework for digital assets, with some advocates pushing for zero capital gains tax on crypto.

Looking Ahead: As of this writing, Bitcoin trades around $109,000, up over 1% in the last 24 hours. The week's economic signals present a complex landscape of potential market movements, with multiple factors capable of influencing cryptocurrency valuations.