This Week in Crypto: Will Macroeconomic Data Trigger a BTC Pullback?

This Week in Crypto: How US Economic Indicators Are Driving Bitcoin Sentiment

This Week in Crypto – As Bitcoin (BTC) hovers around $87,424 with a 2.66% gain over the past 24 hours, traders are closely eyeing a series of key US economic indicators this week. These data releases have historically influenced the cryptocurrency market, particularly amid heightened macroeconomic uncertainty, tariff-related pressures, and shifting Federal Reserve policy expectations.

US Leading Economic Index (LEI) Signals Slowdown

The Conference Board Leading Economic Index (LEI) for March, due on Monday, April 21, is forecasted to decline by 0.5%, following February’s 0.3% drop. Persistent pessimism around consumer expectations and weak manufacturing orders continue to weigh on the economy.

While a slowing LEI typically reduces risk appetite, potentially pressuring Bitcoin short-term, longer-term effects could vary. In scenarios of deeper economic uncertainty, Bitcoin’s “digital gold” narrative might strengthen, though this remains a secondary scenario unless broader policy shocks materialize.

PMI Data Paints Mixed Picture for Risk Assets

The S&P Global US Services PMI rose to 54.4 in March, indicating robust expansion. However, the Manufacturing PMI fell to 50.2, with the ISM Manufacturing Index slipping to 49.0, reflecting contraction.

A strong services sector could reinforce a stronger US dollar, potentially weighing on Bitcoin. In contrast, weakness in manufacturing, worsened by high interest rates and Trump-era tariff risks, may reinforce recession concerns, prompting a bearish crypto outlook.

Jobless Claims and Consumer Sentiment Drive Volatility

Initial Jobless Claims dropped to 215,000 last week, offering slight reassurance amid labor market stress. However, sentiment remains fragile. The University of Michigan’s Consumer Sentiment Index held at 50.8, one of the lowest levels in decades.

This weak consumer sentiment, combined with uncertain monetary policy and geopolitical tensions, underscores a cautious market stance. For Bitcoin, these indicators suggest near-term pressure, especially if broader risk-off sentiment persists.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.