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The crypto market has been on an upward trend, reaching a new high of $2.73 trillion after a shaky March. However, this week brings key US economic reports that could influence market movements. Investors are keeping an eye on employment data, manufacturing trends, and a speech from Federal Reserve Chair Jerome Powell.
April 1: ISM Manufacturing PMI & JOLTS Report
The first major economic event is the ISM Manufacturing PMI report for March, scheduled for Monday. This report will reveal insights into the US manufacturing sector, which recently showed signs of weakening.
However, analysts expect the index to surge from 50.3 to 50.6, signaling a contraction. If the US dollar weakens as a result, Bitcoin and other cryptos could benefit.
On the same day, the March JOLTS report will be released, detailing job openings, layoffs, and resignations. In February, job openings were steady at 7.7 million, and March’s forecast suggests a similar figure of 7.65 million. A strong job market could signal economic resilience, but any unexpected weakness may boost crypto as an alternative investment.
April 3: Jobless Claims & ISM Services PMI
Wednesday will see the release of the jobless claims report, offering a fresh look at the labor market. Last week’s claims stood at 224,000, with this week’s forecast slightly higher at 225,000. While fewer initial claims suggest stability, rising continuing claims indicate challenges in finding new jobs after layoffs.
Additionally, the ISM Services PMI report will provide insights into the non-manufacturing sector, which plays a crucial role in economic growth. February’s data stood at 53.3, hinting at a slight contraction. Analysts expect the March figure to drop to 52.5, signaling potential weakness in the broader economy.
April 4: NFP, Unemployment Report & Fed Chair Powell’s Speech
On Friday, the highly anticipated March employment report will be released, with analysts expecting over 250,000 new jobs. The unemployment rate, which was at 4.1% in February, is expected to decrease to 4%. Strong job data could influence the Federal Reserve’s stance on interest rates.
Another key event on Friday is Federal Reserve Chair Jerome Powell’s speech. In his previous statements, Powell hinted at potential interest rate cuts in the second quarter. Any confirmation or change in this stance could impact both traditional and crypto markets.
How Will Crypto Be Affected?
This week’s economic reports will shape market sentiment across all asset classes, including crypto. Bitcoin, Ethereum, Solana, XRP, and Dogecoin are already trading in the green, riding the bullish momentum. If economic data weakens, investors may turn to crypto as a hedge.
On the other hand, strong job growth could strengthen the dollar, potentially slowing the crypto rally.