- Upcoming U.S. retail sales and jobless claims reports may signal an economic slowdown, with bullish Bitcoin leaning.
- The Federal Reserve’s rate decision this week remains a key factor that could trigger a Bitcoin breakout.
Bitcoin price movement is again in the spotlight this week as traders and analysts watch out for three major U.S. economic updates. These updates include retail sales, jobless claims, and the Federal Reserve’s interest rate decision. Market observers believe this data could shape the next direction of the digital asset market.
Retail Sales Data Could Shape BTC Price Movement
The U.S. retail sales report, expected this week, is the first major economic indicator investors watch. Forecasts point to a 0.6% drop in sales from April to May. While this may seem like a slight change, it is significant because consumer spending makes up a large share of the American economy.
A dip in retail sales may suggest that households are pulling back due to rising prices or future uncertainty. This slowdown usually increases the likelihood of the Federal Reserve cutting interest rates. This could signal a bullish twist for Bitcoin, which is often beneficial when interest rates drop.
There is also concern about how Trump’s trade comments and tariff ideas may affect consumer confidence. Although these external pressures may not directly connect to cryptocurrency, they add to the uncertainty that often pushes investors toward alternative assets like Bitcoin.
As mentioned in our previous news brief, Trump Media & Technology Group recently confirmed that the U.S. SEC has officially signed off on its Bitcoin treasury plan. Given this situation, market participants are keen to see if this approval could influence Bitcoin’s price direction.
Labor Market and Fed Decision Add to Uncertainty
The second primary indicator to watch is the U.S. jobless claims data, which will be released midweek due to the Juneteenth holiday. Analysts expect claims to rise to 250,000, slightly up from the previous week. The change seems small, but it points to a potential weakness in the job market.
Increased unemployment claims could pressure the Federal Reserve to reconsider its current interest rate stance. This week’s Federal Open Market Committee (FOMC) meeting is also in focus, though most market watchers expect rates to remain unchanged. The current target range of 4.25 to 4.5% is widely expected to hold.
However, political pressure is rising. President Trump recently urged the Fed to cut rates by a full percentage point, believing it would help reduce debt interest costs. The Bitcoin price could react quickly if the Fed hints at adjusting its position.
Regarding the situation, as featured in our recent coverage, the US President hinted at replacing Fed Chair Jerome Powell. President Trump has been critical of Fed Chair Powell’s handling of interest rates and the U.S. economy.
In anticipation of important economic data, MarketCap data shows Bitcoin had already moved up 1.80%, trading at $107,156.68. This early response suggests that traders are positioning themselves ahead of any economic surprises this week.
Adding to this positive development, CNF reported that a new update shows that all 30 key market indicators the CoinMarketCap platform tracks are still far from signaling a cycle peak. Notably, projections suggest that Bitcoin could rise as high as $230,000 in this bull run.
Also, in a previous article, we discussed that Michael Saylor of Strategy recently predicted that Bitcoin would become a global powerhouse and could hit a $280 trillion valuation in the long term.
