YEREVAN (CoinChapter.com) — The University of Michigan will release its consumer confidence report on Tuesday, providing insights into buyer attitudes, inflation expectations, and spending trends. This data measures how optimistic consumers feel about the economy, which can influence investment behavior.
The previous consumer confidence index was 104.1, with projections expecting a decline to 102.4. This drop comes as policy changes under President Donald Trump continue to shape economic conditions. Cathie Wood from Ark Invest pointed out that many consumers might be delaying spending due to uncertainty.
“Nearly a third of the labor force, and perhaps their families, could be holding back on spending until they see the impact of rapid policy changes,”
Wood said.
Cathie Wood Analyzes Money Velocity and Government Impact on GDP. Source: X (@CathieDWood)While consumer confidence does not directly impact Bitcoin prices, it signals how much money flows into risk assets. Since Bitcoin relies heavily on retail investors, spending trends matter for crypto market sentiment.
Initial Jobless Claims to Show Labor Market Trends
The initial jobless claims report is scheduled for Thursday and will indicate how many people applied for unemployment benefits for the first time in the past week. This report provides a real-time measure of labor market conditions.
Last week, 219,000 claims were recorded. Economists expect a rise to 225,000 for the week ending Feb. 22. If jobless claims increase, it could signal a slowing economy, which often shifts investment toward safe-haven assets.
A lower-than-expected jobless claims figure may indicate labor market strength, supporting riskier investments, including Bitcoin. Since the Federal Reserve (Fed) monitors labor data to adjust monetary policy, this report could influence market expectations about interest rate decisions.
US GDP Report to Shape Bitcoin’s Appeal
The US GDP report, also set for Thursday, will provide an overview of economic growth. GDP data reflects overall economic activity and can impact expectations for monetary policy and inflation control.
Analysts expect 2.3% growth for Q4 2024. A stronger-than-expected GDP could indicate a resilient economy, potentially reinforcing expectations that the Fed may not cut interest rates soon. This could reduce Bitcoin’s appeal as an alternative asset.
If GDP data is weaker than expected, it may increase speculation about recession risks. Slower growth can push the Fed toward easing monetary policy, making risk assets like Bitcoin more attractive.
PCE Inflation Report Could Influence Market Sentiment
The Personal Consumption Expenditures (PCE) index, scheduled for Friday, is the Federal Reserve’s preferred inflation gauge. This report measures price pressures and influences expectations for interest rate decisions.
Economists project 0.3% monthly growth for the headline PCE index and 0.2% for the core figure. If inflation remains high, the Fed may hold off on rate cuts, affecting investment in risk assets.
Peter Schiff Criticizes Fed’s 2% Inflation Target and Quantitative Easing. Source: X (@PeterSchiff)A lower-than-expected PCE index could indicate easing inflation, which might increase expectations for a more accommodative monetary policy. This could drive Bitcoin demand, as lower interest rates typically benefit risk assets.
Bitcoin Price Performance
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