Crypto Markets Will Watch These 4 US Economic Indicators This Week

After last week's US CPI (Consumer Price Index) and PPI (Producer Price Index) — two key economic indicators that influence the Federal Reserve's monetary policy —

Last week's US CPI (Consumer Price Index) and PPI (Producer Price Index) — two key economic indicators that influence the Federal Reserve’s monetary policy — had traders and investors focused on what’s next for the macro market and its implications for crypto.

This week will see four US economic indicators that could be on the radar of crypto market participants. The role of macro events in shaping Bitcoin (BTC) price trends has become increasingly apparent, making these data points crucial for traders.

Here are four key US economic indicators to watch this week:

Initial Jobless Claims

Reported weekly by the U.S. Department of Labor, Initial Jobless Claims measure the number of individuals who filed for unemployment benefits for the first time. This serves as a key indicator of labor market health, which in turn influences investor sentiment towards crypto.

“A core labor market indicator that could shift market expectations on Fed policy,” an indicator expert wrote in a recent post.

According to Trading Economics, economists are forecasting a reading of 232,000 for the week ending May 17, compared to the previous week’s report of 229,000.

This suggests that economists are anticipating a slight deterioration in the labor market last week. Such an outcome could be positive for crypto, as it may factor into traders' anticipation of less aggressive action from the Fed in raising interest rates.

Conversely, if Initial Jobless Claims come in below the previous week’s report of 229,000, it would suggest that the U.S. labor market is performing more strongly than anticipated.

This could lead to traders pricing in less risk-off sentiment, which may favor the USD over risk assets like Bitcoin. It could also tilt the odds in favor of tighter monetary policy, to keep inflation in check despite the strong labor market.

Crypto traders will be watching this report closely for any signs of volatility that could affect crypto prices. This indicator is also known to influence the dollar and yields, which in turn impact crypto.

Recent trends in jobless claims show that there have not yet been any signs of labor market stress, despite the uncertainties related to tariffs and their potential to disrupt the economy.

Services PMI

Released monthly by S&P Global, the Services PMI provides insight into the health of the U.S. services sector. This spans various industries including transport, finance, and hospitality.

For crypto markets, the Services PMI is a factor in broader risk sentiment and USD dynamics. A reading above 50 indicates expansion in activity, while readings below 50 signal contraction.

Stronger-than-expected data, such as April’s Services PMI coming in at 50.8, suggests resilience in the U.S. economy. This could favor the USD and decrease traders’ appetite for speculative assets like Bitcoin.

Conversely, weaker-than-expected data, potentially below last month’s 50.8 reading or even below 50, can boost cryptocurrencies as it signals a slowdown in the U.S. economy.

Crypto traders will be keeping an eye on this indicator for its impact on broader macroeconomic trends. Services are a significant contributor to U.S. GDP, making this index a key driver of broader economic performance.

With economists forecasting a flash estimate of 50.8 for May’s Services PMI, a reading below this level could benefit Bitcoin by highlighting fragility in the U.S. economy amid ongoing tariff concerns.

The release of this report on Thursday, May 22, alongside Manufacturing PMI and Jobless Claims, could amplify volatility in the markets.

Manufacturing PMI

Also reported by S&P Global, the Manufacturing PMI provides insight into the health of the U.S. manufacturing sector. Similar to the Services PMI, a reading above 50 indicates expansion in activity, and below 50 signals contraction. For crypto markets, this indicator reflects industrial health, which influences USD strength and risk appetite.

Recently, there has been increasing pressure on the U.S. manufacturing sector due to President Trump’s tariff policies.

According to an indicator expert, “April’s (U.S.) Manufacturing PMI dropped due to new tariffs slowing deliveries, pushing suppliers' delivery times longer and increasing purchasing activity.” This fragility in the manufacturing sector may have increased demand for Bitcoin as a hedge.

Crypto traders will be looking for directional cues from Thursday’s flash PMI report, with economists forecasting a close watch on May’s Manufacturing PMI at 49.8.

A reading below this projection could spark a rally in cryptocurrencies as it signals that the U.S. economy is facing deeper challenges than anticipated. However, if the report comes in at 50 or above, or even above April’s 50.2 reading, it may limit any bullish momentum in cryptocurrencies.

“PMI data for April 2025 shows manufacturing contracting (PMI