Bitcoin's price could be influenced this week by several critical U.S. economic events, particularly Federal Reserve Chair Jerome Powell's upcoming testimony, new jobless claims, and the PCE inflation index. These developments come at a time when the crypto market is experiencing a bearish trend, with a notable 2.6% decline in total market cap over the last 24 hours. Bitcoin has dipped by 4.9% this week, with other cryptocurrencies like Ethereum and Solana showing similar downtrends.
The U.S. Economic Surprise Index—the metric that assesses if economic data aligns with expectations—has hit its lowest since 2025. Such an index often foreshadows decreased risk appetite among investors, potentially impacting demand for cryptocurrencies.
On June 24, Powell will testify before Congress about economic policy, including employment and inflation—a key event with significant potential to sway crypto prices. If Powell adopts a hawkish tone, it might negatively affect Bitcoin's price, while a dovish message could offer support. A neutral delivery could create short-term price fluctuations.
In addition to Powell's remarks, jobless claims data is being closely monitored. With forecasts suggesting a potential rise from 245,000 to 247,000 claims, this could be a sign of economic weakness, possibly favoring Bitcoin's performance in the market. Conversely, lower claims might indicate strength in the economy, putting pressure on crypto assets.
Also significant is the Personal Consumption Expenditures (PCE) Index, which is set for release on June 27. Should the inflation rate exceed expectations, it could lead the Fed to delay rate cuts, enhancing the dollar's strength while dampening interest in Bitcoin.
As this week unfolds, the direction of the market will largely depend on how these economic indicators play out. Investors should brace for volatility as they navigate this uncertain landscape.
The U.S. Economic Surprise Index—the metric that assesses if economic data aligns with expectations—has hit its lowest since 2025. Such an index often foreshadows decreased risk appetite among investors, potentially impacting demand for cryptocurrencies.
On June 24, Powell will testify before Congress about economic policy, including employment and inflation—a key event with significant potential to sway crypto prices. If Powell adopts a hawkish tone, it might negatively affect Bitcoin's price, while a dovish message could offer support. A neutral delivery could create short-term price fluctuations.
In addition to Powell's remarks, jobless claims data is being closely monitored. With forecasts suggesting a potential rise from 245,000 to 247,000 claims, this could be a sign of economic weakness, possibly favoring Bitcoin's performance in the market. Conversely, lower claims might indicate strength in the economy, putting pressure on crypto assets.
Also significant is the Personal Consumption Expenditures (PCE) Index, which is set for release on June 27. Should the inflation rate exceed expectations, it could lead the Fed to delay rate cuts, enhancing the dollar's strength while dampening interest in Bitcoin.
As this week unfolds, the direction of the market will largely depend on how these economic indicators play out. Investors should brace for volatility as they navigate this uncertain landscape.
