U.S. Economic Events This Week May Trigger Wild Volatility in Crypto

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Bitcoin and Ethereum started the week under pressure, with BTC slipping below $113K and ETH holding near $4,700. While crypto has its own momentum, traders are closely watching three US economic signals that could sway prices in the coming days.

Meanwhile, on-chain analysis by Santiment has flagged rising market euphoria around potential Fed rate cuts, warning it could mark a local top for crypto. Social buzz on “Fed, rates, Powell” has surged to an 11-month high, reflecting heightened attention. While some analysts expect massive inflows if cuts materialize, others caution that the short-term setup may lean bearish.

U.S Economic Calendar This Week

Consumer Confidence and Sentiment

On Tuesday, fresh US consumer confidence data is expected to dip slightly from last month, hinting at weaker household spending power. Later in the week, consumer sentiment numbers will also be released, with forecasts showing little improvement. Both these readings remain near crisis levels, reflecting ongoing pressure on American consumers. For crypto, weaker confidence often signals economic strain, which can trigger bets on Fed rate cuts, usually supportive for Bitcoin. But stronger numbers tend to favor stocks instead, pulling liquidity away from digital assets.

Jobless Claims in Focus

Weekly jobless claims remain another key signal. Economists expect new filings to ease slightly to around 230,000, down from 235,000 earlier. That would point to labor market strength, giving the Fed less reason to cut rates, a short-term headwind for Bitcoin. On the other hand, steadily rising continuing claims suggest more Americans are struggling to find jobs, highlighting cracks in the economy. This split makes jobless data particularly important for crypto traders, who remain sensitive to shifts in growth outlook and liquidity.

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PCE Inflation Data

The final big number to watch is the PCE (Personal Consumption Expenditures) inflation report. Forecasts put core PCE at 2.9%, slightly above July’s 2.8%. Sticky inflation at these levels could mean fewer chances of aggressive Fed easing, tightening liquidity for risk assets like Bitcoin. However, for long-term believers, persistent inflation only strengthens Bitcoin’s appeal as a hedge against monetary debasement.

Outlook for Bitcoin and Ethereum

So far, Bitcoin has dropped more than 2% in the last 24 hours while Ethereum remains steady after testing new highs. With consumer data, jobless claims, and PCE inflation all landing this week, crypto traders are bracing for volatility. Whether it brings short-term pressure or a fresh boost may depend entirely on how the Fed reads the US economy’s pulse.