US Economic Events with Crypto Implications This Week

There are so many US economic events this week, but only a handful have implications for the crypto market.

After the CPI (Consumer Price Index) last week, traders and investors will be particularly focused on the FOMC interest rate decision this week.

US Economic Data That Could Move Bitcoin and Crypto Markets

Traders and investors may consider cushioning their portfolios by frontrunning the following US economic data.

US Economic Data with Crypto Implications. Source: MarketWatch Retail Sales

Retail sales data tracks consumer spending, a key driver of US economic growth. Strong retail sales suggest resilient consumer demand, potentially pushing Treasury yields higher as investors anticipate inflationary pressure and tighter monetary policy.

This often translates into short-term downside for crypto markets, as higher yields and a stronger dollar reduce the appeal of non-yielding assets like Bitcoin.

Conversely, weak retail sales indicate slowing demand and a softer economy, which can fuel expectations of Fed rate cuts. That shift in sentiment tends to boost risk assets, including crypto, as liquidity becomes more accessible.

Often framed as both a hedge and a speculative asset, Bitcoin reacts sharply to retail sales surprises. Economists surveyed by MarketWatch project a 0.3% increase in retail sales for August, which would mean a drop from the 0.5% increase recorded in July.

Strong prints can trigger selloffs on this account, while weak prints can spark rallies, especially if investors expect a more accommodative Fed stance.

“Following the release of stronger producer price index (PPI) data yesterday, US Treasury bond yields increased, and the dollar gained strength while gold prices decreased. The upcoming retail sales and industrial production data, which are expected shortly, will also aid in assessing the inflation trend,” wrote Asad Rizvi, Former Treasury head at Chase Manhattan Bank.

FOMC Interest Rate Decision

Meanwhile, perhaps the most crucial US economic event this week is the FOMC interest rate decision, due on Wednesday. It follows the CPI reading last week, which was in line with market expectations.

Weaker-than-expected PPI data at 2.6% reinforced market confidence in potential Federal Reserve rate cuts.

Asia Pacific Crypto Morning Briefing