Economic Data Affects Bitcoin’s Value

This week holds significant implications for Bitcoin and the Dollar Index as US economic data is poised to influence both. The upcoming US Manufacturing Purchasing Managers’ Index (PMI) will be a crucial determinant of the dollar’s trend. A lower PMI reading could signal a weaker dollar, which might result in an uptick for Bitcoin (BTC) and other risky assets.

Bitcoin’s Recent Downturn

Over the past week, Bitcoin has seen a value drop of more than 10%, primarily due to the stabilization of the dollar index and Bitcoin’s muted response. The persistent two-month weakening of the dollar is now at a crossroads, contingent upon this week’s economic data releases. Should the dollar weaken further, it could create a favorable environment for cryptocurrencies and other risky assets. Access NEWSLINKER to get the latest technology news.

What to Expect from Friday’s Data?

Critical non-farm payroll data is set to be released this Friday, adding more weight to this week’s economic developments. ING analysts anticipate the unemployment rate to decrease to 4.2% with the addition of 165,000 new jobs. If these numbers fall short, the dollar could weaken further, presenting a potential opportunity for Bitcoin to gain.

User-Usable Inferences

– Monitor Tuesday’s PMI data; a weaker-than-expected PMI could weaken the dollar and boost Bitcoin.
– Pay attention to Friday’s non-farm payroll data; weaker job growth could also weaken the dollar.
– Be aware of the MACD indicator; it suggests a potential downtrend for Bitcoin to the $56,000 level.
– Stay updated on US economic data releases to anticipate market movements.

From a technical standpoint, Bitcoin must navigate this crucial period cautiously. The MACD indicator signals a strengthening downtrend, possibly driving Bitcoin down to the $56,000 mark. Investors should closely monitor forthcoming US economic data and exercise caution regarding potential market fluctuations.

This week’s US economic data will be vital in shaping Bitcoin’s near-term performance. A declining dollar could benefit risky assets, but market uncertainties and unexpected economic outcomes could lead to price volatility in Bitcoin.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

Source: https://en.bitcoinhaber.net/economic-data-affects-bitcoins-value