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Vignesh S G
Vignesh S G
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- Nov 18, 2024 10:56 UTC
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US Economic Indicators This Week: What They Mean for Bitcoin and Crypto Prices
Several key US economic indicators, including housing starts, manufacturing indices, and consumer sentiment, are scheduled to be released this week.
Strong economic data, such as increased housing starts and manufacturing activity, could negatively impact the crypto market.
Weak economic indicators, like a decline in the PMI or consumer sentiment, could boost the cryptocurrency market.
This week is set to be a turning point for the US economy, with major economic reports scheduled for release. From housing starts to consumer sentiment, these updates carry implications for both traditional markets and cryptocurrencies. The crypto community is paying close attention to how these indicators might influence market trends.
Let’s break it down.
How Housing Starts Could Influence Crypto
The US Housing Starts Index, which tracks the number of new residential construction projects, will be released tomorrow. In September, it recorded 1.354 million units, falling short of the TEForecast of 1.38 million and lower than August’s 1.361 million units.
This time, analysts expect a slight dip to 1.34 million units. If the index exceeds this forecast, it would signal economic resilience, potentially drawing investors toward traditional assets and away from cryptocurrencies.
Philadelphia Fed Manufacturing Index
The Philadelphia Fed Manufacturing Index, based on a survey of manufacturers, is due on Thursday, November 21. In October, it surged to 10.3 points, far exceeding the consensus of 3 points and September’s 1.7 points.
For November, expectations are mixed. The consensus predicts a drop to 7 points, but TEForecast projects a rise to 11 points. A stronger-than-expected reading could underscore a robust traditional market, which may reduce crypto’s attractiveness.
Existing Home Sales and Crypto Sentiment
The Existing Home Sales Index, which indicates economic confidence, is also scheduled for Thursday. September’s figure of 3.84 million was slightly lower than August’s 3.88 million, despite forecasts suggesting improvement.
For November, both the consensus and TEForecast expect the index to rise to 3.87 million. If it surpasses these predictions, stronger consumer confidence could shift attention away from cryptocurrencies.
What Manufacturing PMI Tells About Crypto’s Future
The S&P Global Flash US Manufacturing PMI Index, compiled from questionnaires sent to purchasing managers, is scheduled to be released on November 22, Friday. In September, it slipped to a 15-month low of 47.3. However, in October, it rebounded slightly, rising from 47.8 to 48.5.
A decline in PMI could drive investors toward crypto, as a falling PMI heightens fears of an economic slowdown.
Michigan Consumer Sentiment: Crypto’s Opportunity or Risk?
The United States Michigan Consumer Sentiment, which offers a glimpse into consumer expectations, is set to be released on November 22, Friday. Last time, it surged from 70.5 to 73 points – significantly better than the consensus of 71. This time, the consensus expects no change.
A rise in sentiment strengthens confidence in traditional investments, which might reduce crypto’s appeal in the short term.
Why Crypto Investors Care About These Numbers
Cryptocurrency markets are sensitive to macroeconomic data. Strong economic indicators often lead to bearish trends in crypto, as investors favor traditional assets. Conversely, weak data can make cryptocurrencies more attractive as a hedge against economic uncertainty.
As these key indicators are released, their impact on the crypto market could be significant.
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