The price of Bitcoin (BTC) has had a good start to the week, staying well above the $63,000 mark during the first hours of the Asian session.
PMI Services and Manufacturing
The Commerce Commission will release purchasing managers’ index (PMI) data for the manufacturing and services sectors this Monday, September 23. This report will help us learn more about the health of these sectors.
With a previous index of 55.7 and a median forecast of 55.4, a PMI above 50 would indicate expansion in the manufacturing and services sectors. This could prove positive for risk assets such as Bitcoin, especially if the report signals economic growth.
Consumer Confidence and Sentiment Report
The Consumer Confidence Report, scheduled for Tuesday, September 24, will be closely followed by the Consumer Confidence Report on Friday, September 27. These two surveys, although they come from different sources, make it possible to measure the level of optimism or pessimism of consumers about the future of the economy.
Both reports reflect consumers’ attitudes about their financial situation and their perception of business and labor market conditions for the next six months. In short, they offer a snapshot of how people perceive the economy today and in the near future.
As inflation moderates in the United States, optimism among consumers is growing. This positive change is largely due to expectations that inflation will continue to decline until the end of the year, making it easier for households to manage their finances.
If these reports show increased confidence and sentiment, it could indicate a greater willingness to spend among consumers. This brighter outlook could also have a ripple effect that could benefit speculative assets like Bitcoin. A more trusting consumer base generally means a greater tolerance for risk, which is good for investments perceived as high risk but high return.
THE US GDP for the second quarter
The second quarter gross domestic product (GDP) report, scheduled for Thursday, September 26, is one of the week’s key economic indicators. This will be the second revision after the initial July report, which showed a quarter-on-quarter increase of 2.8%. This figure was well above the 1.4% growth from the previous quarter.
The main driver of GDP growth was increased domestic spending. An increase in consumer spending often supports the economy and inflation while also strengthening the US dollar. Conversely, a slowdown in spending could reduce these impacts.
A solid GDP report could thus strengthen the confidence of American citizens in the stability of the economy. This positive sentiment could also benefit the price of Bitcoin, with many investors viewing it as an alternative investment or hedge. In addition, robust economic data could reinforce the Federal Reserve’s more measured approach to monetary policy. Indeed, crypto investors are particularly attentive to Fed policies because they directly affect liquidity and market conditions.
To go further: Bitcoin Price Predictions for 2024/2025/2030
The Fed Speaks: Jerome Powell and Michelle Bowman
Federal Reserve Chairman Jerome Powell is expected to deliver his opening remarks on Thursday, with markets eagerly awaiting his comments following recent inflation data and a 50 basis point interest rate cut by the Federal Open Market Committee. Powell’s statements could thus have a significant impact on crypto market sentiment.
In addition to Powell’s remarks, several other Fed officials will speak during the week. Crypto investors will be watching these comments closely Monday through Friday, especially after last week’s unexpected rate cut. The intervention of Fed Governor Michelle Bowman, which is scheduled for Tuesday and Thursday, arouses great interest.
“The committee’s entire political action could be interpreted as a premature declaration of victory over our mandate for price stability. I believe that moving at a moderate pace toward a more neutral policy stance will ensure further progress in reducing inflation to our 2% target,” Bowman said in a statement Friday.
Bowman has become a focal point for her dissenting stance on a recent policy decision, the first time a Fed member has expressed a dissenting opinion since 2005. Given her unique position, Bowman’s upcoming comments will be closely watched as investors try to understand his concerns about the speed of rate cuts.
Core PCE inflation
The Personal Consumer Expenditure (PCE) price index on Friday, September 27 will be the key economic indicator to watch this week. Core PCE, which excludes volatile categories such as food and energy, is one of the critical data points the Federal Reserve uses to assess inflation trends and determine future monetary policy decisions.
Analysts forecast a 0.2% month-on-month increase in core PCE and a 2.7% year-on-year increase. At the same time, overall inflation is expected to slow down to 2.3%.
If PCE inflation is lower than expected in August, this could increase the likelihood of further rate cuts, a development that would be favorable for Bitcoin. Lower rates tend to encourage lending, leading to increased liquidity in financial markets.
An environment of lower rates and greater liquidity is generally positive for Bitcoin, as investors often turn to riskier assets during such periods. Data from BeInCrypto shows that BTC is trading at $63,882 at the time of writing, up 1.51% since the start of Monday’s session.
Moral of the story: When America stands up, cryptocurrency stands at attention.
Disclaimer
Disclaimer: In accordance with The Trust Project guidelines, BeInCrypto is committed to providing unbiased and transparent information. This article aims to provide accurate and relevant information. However, readers are encouraged to check the facts for themselves and seek professional advice before making any decisions based on this content.