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Why US Economic Events This Week Matter for Bitcoin Prices

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Cryptocurrency traders and investors are closely monitoring key events on this week’s US economic calendar. As Bitcoin (BTC) maintains a price above $64,000, these events could trigger significant market fluctuations.

The crypto market, largely driven by retail investors, remains susceptible to economic pressures and regulatory uncertainties. With these factors at play, traders are eager to see how the week unfolds.

Key US Economic Events This Week

Bitcoin is eyeing further gains, supported by the Federal Reserve’s recent dovish tone. This week’s US economic events could heavily influence retail sentiment, potentially setting the stage for the next price movement in crypto markets. Several key items on the economic calendar hold the potential to impact Bitcoin and broader crypto prices, making them critical for traders to watch.

Consumer Confidence Index

The Conference Board is set to release the US Consumer Confidence Index on August 27, the last Tuesday of the month. This index offers insights into spending trends by reflecting consumer attitudes, buying plans, and vacation intentions.

High consumer confidence typically correlates with increased spending, potentially boosting economic activity. Such optimism might lead to greater investments in assets like Bitcoin. On the flip side, low consumer confidence, signaling reduced spending, could prompt the Federal Reserve to maintain a dovish stance, leading to more liquidity in the financial system.

In this scenario, Bitcoin could benefit as investors turn to it as an alternative store of value and inflation hedge. Given this backdrop, Tuesday’s data will be pivotal for crypto markets, offering a snapshot of consumer sentiment regarding the economy. The current forecast stands at 100.5, a slight increase from 100.3.

Read more: How to Protect Yourself From Inflation Using Cryptocurrency

Initial Jobless Claims

Crypto markets are also closely watching Thursday’s initial jobless claims report, which will offer fresh insights into the US labor market’s health. Recently, the number of Americans filing new unemployment claims has edged higher, signaling a gradual cooling of the labor market — a factor that has encouraged the Fed’s cautious stance on rate cuts.

The last reported figure was 232,000, with a middle projection of 234,000 for the upcoming data. According to the Labor Department, initial jobless claims increased by 4,000 to a seasonally adjusted 232,000 for the week ending August 17, while economists expected 230,000.

A higher-than-anticipated rise in jobless claims could point to economic instability, driving investors toward Bitcoin as a hedge against traditional markets. Conversely, a drop in claims may boost confidence in traditional assets, potentially diverting capital away from cryptocurrencies. With the Fed closely monitoring labor conditions, these numbers will be key for both traditional and crypto investors alike.

GDP

This week’s second revision of Gross Domestic Product (GDP) data, scheduled for Thursday, is a critical release for the markets. GDP measures the overall economic output and health of a country by calculating the total value of goods and services produced.

A positive revision would signal robust economic growth, potentially driving investors to riskier assets like Bitcoin and other cryptocurrencies. On the other hand, a downward adjustment could dampen sentiment, leading to a pullback in crypto prices as investors grow cautious.

In the previous report, GDP grew at an annualized rate of 2.8% in Q2, surpassing the 1.4% pace recorded in Q1. This steady growth has helped ease recession fears, suggesting resilience in the broader economy. If confirmed by Thursday’s data, investor optimism could spill over into the crypto market, reinforcing Bitcoin’s appeal as a high-reward asset.

Personal Income and PCE Index

The US Bureau of Economic Analysis (BEA) is set to release personal income, spending, the PCE index, and core PCE data on Friday. These figures will provide crucial insights into inflation and consumer behavior, directly influencing the Federal Reserve’s next moves.

Weaker personal income and spending data, paired with softer inflation, could pave the way for a 50-basis-point rate cut in September. Such a dovish approach from the Fed could boost demand for riskier assets like Bitcoin. However, if spending power drops sharply, recession fears might resurface, potentially dampening Bitcoin demand.

The Personal Consumption Expenditures (PCE) index, especially the core PCE excluding food and energy prices, will be a key inflation gauge. A higher-than-expected core PCE reading would indicate persistent inflationary pressures, leading investors to seek alternative assets like Bitcoin, which is often viewed as an inflation hedge. On the flip side, a lower core PCE index could reduce demand for cryptocurrencies as investors turn to more stable investments.

Consumer Sentiment

Markets also brace for the University of Michigan’s Consumer Sentiment survey release for August on Friday. This data shows the gap between the US economy’s continued strength and how households feel about their personal financial situation.

If the data shows consumers are still struggling with inflation and high interest rates while also worrying more about their jobs, crypto could react in different ways. Notably, consumer sentiment is much more sensitive to inflation, while consumer confidence is more sensitive to the labor market.

Read more: How To Buy Bitcoin (BTC) and Everything You Need To Know

Ultimately, the relationship between crypto and US macroeconomics is not always straightforward. The market reacts to data releases in unexpected ways determined by what transpires in the days leading to the data release date. It is worth mentioning that all of the above data will affect the S&P500 Index (SPX) and, therefore, also impact Bitcoin.

US Government Bitcoin Supply Overhang

The US government’s Bitcoin holdings remain a significant concern for the market. According to Arkham Intelligence, the government currently holds around 203,239 BTC. Any large transfer from this inventory could trigger fears of an oversupply, potentially driving Bitcoin’s price below the $60,000 mark.

US Government Bitcoin Supply, as crypto braces for US economic events
US Government Bitcoin Supply, Source: Arkham Intelligence

According to BeInCrypto data, Bitcoin is currently trading at $64,067, reflecting a 0.23% dip since the market opened on Monday. Further developments this week could determine its next directional move.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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XRP Price Reversal Toward $3.5 In The Works With Short And Long-Term Targets Revealed

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The XRP price is showing signs of a strong bullish reversal, with a crypto analyst predicting a potential rebound toward $3.5 and even higher. After experiencing significant volatility and undergoing a consolidation due to recent price declines, technical indicators now show support for XRP’s bullish outlook. As a result, the analyst has provided a short—and long-term price target for the cryptocurrency. 

XRP Price Projected To Reverse To $3.5

According to ‘Setupsfx’, a crypto analyst on TradingView, XRP is now in a bullish reversal phase, meaning its price is expected to break out of its recent downturn and rise to new highs. Based on the expert’s chart analysis of XRP, the cryptocurrency is predicted to see an explosive increase to $3.5 following the end of its consolidation phase.

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The chart indicates that the price of XRP is expected to rise to $3.5 in the coming months. However, from a fundamental analysis perspective, the analyst believes XRP is not limited to this bullish price target and could potentially surpass it to exceed current all-time highs of $3.84.

XRP
Source: Setupsfx on Tradingview

While the TradingView expert’s analysis of XRP maintains a neutral stance, implying uncertainty in the trend, he has also emphasized the cryptocurrency’s strong potential for growth. Hence, XRP could experience significant upward movement if market conditions align favorably and investor sentiment and confidence strengthen.

For his short-term price target, the crypto analyst forecasts that XRP could rally to a level above $3.5. He advises traders who intend to hold their positions for a short period to aim for this price level, as it could be a strategic exit point before a potential pullback. 

Notably, the analyst’s long-term price target for XRP has been set at $4.0 or higher. Considering XRP’s price is currently trading at $2.09, a surge to $4 would represent an almost 100% increase in its price.

Technical Elements Supporting Bullish Reversal

In his chart analysis, Setupsfx highlights XRP’s price action in a 12-hour time frame, showcasing key movements, trends, and technical elements that support his bullish projection. These elements include liquidity and IMB zones, which are areas where price action is expected due to pending orders. 

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The analyst also highlights an accumulation phase, as XRP has been consolidating at lower levels, signaling the possibility of a potential breakout. The appearance of strong low wicks further indicates that buyers are regaining control of the market. 

Finally, the TradingView analyst has indicated that the altcoin has already undergone a three-point trendline rejection, which means it has tested and rejected a resistance level multiple times. The expert’s price chart also provides an ideal entry point for both short and long-term traders, marked at $1.8. A stop loss has also been placed significantly lower around $1.2 to minimize potential losses.

XRP
XRP trading at $2.1 on the 1D chart | Source: XRPUSDT on Tradingview.com

Featured image from iStock, chart from Tradingview.com



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BNB Price Faces More Downside—Can Bulls Step In?

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Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he’s trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush’s journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he’s poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush’s unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.



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VanEck Sets Stage for BNB ETF with Official Trust Filing

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Global investment management firm VanEck has officially registered a statutory trust in Delaware for Binance’s BNB (BNB) exchange-traded fund (ETF). 

This move marks the first attempt to launch a spot BNB ETF in the United States. It could potentially open new avenues for institutional and retail investors to gain exposure to the asset through a regulated investment vehicle.

VanEck Moves Forward with BNB ETF 

The trust was registered on March 31 under the name “VanEck BNB ETF” with filing number 10148820. It was recorded on Delaware’s official state website.

VanEck BNB ETF Filing
VanEck BNB ETF Filing. Source: State of Delaware Official Website

The proposed BNB ETF would track the price of BNB. It is the native cryptocurrency of the BNB Chain ecosystem, developed by the cryptocurrency exchange Binance.

As per the latest data, BNB ranks as the fifth-largest cryptocurrency by market capitalization at $87.1 billion. Despite its significant market position, both BNB’s price and the broader cryptocurrency market have faced some challenges recently.

Over the past month, the altcoin’s value has declined 2.2%. At the time of writing, BNB was trading at $598. This represented a 1.7% dip in the last 24 hours, according to data from BeInCrypto. 

BNB Price Performance
BNB Price Performance. Source: BeInCrypto

While the trust filing hasn’t yet led to a price uptick, the community remains optimistic about the prospects of BNB, especially with this new development.

“Send BNB to the moon now,” an analyst posted on X (formerly Twitter).

The filing comes just weeks after VanEck made a similar move for Avalanche (AVAX). On March 10, VanEck registered a trust for an AVAX-focused ETF. 

This was quickly followed by the filing of an S-1 registration statement with the US Securities and Exchange Commission (SEC). Given this precedent, a similar S-1 filing for a BNB ETF could follow soon.

“A big step toward bringing BNB to US institutional investors!” another analyst wrote.

Meanwhile, the industry has seen an influx of crypto fund applications at the SEC following the election of a pro-crypto administration. In fact, a recent survey revealed that 71% of ETF investors are bullish on crypto and plan to increase their allocations to cryptocurrency ETFs in the next 12 months. 

“Three-quarters of allocators expect to increase their investment in cryptocurrency-focused ETFs over the next 12 months, with demand highest in Asia (80%), and the US (76%), in contrast to Europe (59%),” the survey revealed.

This growing interest in crypto ETFs could drive further demand for assets like BNB, making the VanEck BNB ETF a potentially significant product in the market.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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