What to Expect for Crypto Market Prices This Weeks US Economic Data Watch
Key Economic Indicators Set to Impact Crypto Market
The upcoming release of three major economic indicators on October 24th is expected to create ripples in the crypto market. The metrics, which include Jobless Claims, Manufacturing PMI, and Services PMI, will provide valuable insights into the state of the US economy.
Jobless Claims: A Close Look
On October 12, the Initial Jobless Claims index showed a decline to 241,000 from the previous week’s 260,000. However, forecasts for this week suggest a slight increase to 247,000, signaling a rise of 6,000.
This slight rise in jobless claims could indicate a slightly weaker job market. If this trend continues, it might prompt the Federal Reserve to consider more interest rate cuts, which could benefit cryptocurrencies.
Stability on the Horizon?
On October 17, the US Continuing Jobless Claims index stood at 1.867K, higher than the previous week’s value of 1.861K. This week, it is expected to drop slightly to 1.865K.
A slight drop in continuing claims suggests a stable labor market. An improvement in these numbers could indicate a stronger economy, potentially impacting investor sentiment.
Manufacturing PMI: Signs of Slowdown
In September, the US Manufacturing PMI index dropped to 47.3, the lowest since June 2023, down from over 51 in May 2024. This consistent decline since June has raised concerns about a potential economic slowdown.
If the Manufacturing PMI continues to decline, investors may view cryptocurrencies as a safer option against market risks, particularly during uncertain times.
Services PMI: A Health Check
In September, the US Services PMI index recorded 55.2, a slight decrease from August’s 55.7.
A robust services sector is typically indicative of a healthy economy. However, a decline in this index could reduce interest in riskier assets like cryptocurrencies.
Navigating the Ups and Downs
In summary, this week’s economic data is expected to show minor changes, with slight increases in unemployment claims and modest shifts in the PMI indices. It is crucial to closely monitor these releases, especially the Manufacturing PMI. If the data reveals a weakening economy that deviates from expectations, it could spark renewed interest in the cryptocurrency sector.