Bitcoin is trading at $87,472, rising 3.23% over the past 24 hours. However, several U.S. economic indicators to be announced this week are expected to increase market volatility.
The March Leading Economic Index (LEI) to be released on Monday is forecast to decline by 0.5%. This suggests a drop in consumer confidence and a slowdown in manufacturing activity. While the six-month trend shows slight improvement, the overall momentum still indicates economic weakness.
For Bitcoin, this situation typically leads to a decrease in risk appetite. Investors may move to safer assets like bonds. However, if concerns about the financial system grow, Bitcoin could benefit as a digital safe-haven asset.
On Wednesday, the March Services PMI will be released. Last month's figure of 54.4 showed robust growth in the U.S. service sector. If the number remains above 50, the dollar's strength is likely to continue.
Dollar strength is generally negative for alternative assets like Bitcoin. Additionally, the reduced likelihood of an early Fed rate cut could weaken the cryptocurrency market's momentum.
Unlike the service sector, U.S. manufacturing is struggling. If further weakness is confirmed in the Manufacturing PMI, recession concerns may increase, and funds could potentially exit risky assets like Bitcoin, especially if the stock market declines.
On Thursday, new unemployment claims will be announced. While slightly decreased last week, the labor market remains weak. A larger-than-expected increase could heighten recession concerns and burden risky assets like Bitcoin.
On Friday, the consumer sentiment index will be released. Currently, consumer sentiment remains at historically low levels. This announcement could either reconfirm the gloomy outlook or show potential signs of recovery. Weak consumer sentiment typically reduces interest in speculative assets like Bitcoin, while even a slight improvement could restore risk appetite and provide a short-term boost.
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