4 US Economic Reports That Could Drive Bitcoin’s Next Move
Four key US economic indicators—CPI, PPI, retail sales, and weekly jobless claims—are due this week and could sway Bitcoin’s price by influencing Federal Reserve policy and the US dollar. The July Consumer Price Index (CPI) held at 2.7% year-over-year, matching expectations and slightly easing inflation concerns. Traders now turn to the Producer Price Index (PPI) on Thursday for further inflation signals, followed by July retail sales and initial jobless claims on Friday. Stronger data could bolster the dollar and bond yields, weighing on Bitcoin, while softer figures may revive rate-cut bets and fuel a crypto rally. Market participants will monitor these releases closely for insights into liquidity conditions and trading opportunities in the crypto markets.
Neutral
These upcoming US economic indicators present mixed potential outcomes for Bitcoin trading. Historically, a softer-than-expected CPI or PPI boosts bullish sentiment, as seen in mid-2023 when inflation cooled and BTC rallied. However, strong retail sales and employment data can strengthen the dollar and pressure risk assets, leading to sell-offs. Given the balanced forecasts and the recent 2.7% CPI result in line with estimates, traders may adopt a wait-and-see stance. In the short term, this ambiguity could cause volatility around data releases. In the long run, persistent inflation trends and Fed rate decisions will guide Bitcoin’s broader trajectory. Overall, the lack of clear directional signals points to a neutral market impact.