5 Key US Economic Indicators to Watch This Week

Amid growing global economic tensions and just days before a new round of tariffs pushed by former President Trump takes effect, investors, including those in the

Investors are on the lookout for five key U.S. economic indicators this week. The reports, which could spark price volatility in Bitcoin and other cryptocurrencies, will provide insight into the "health" of the American economy amid new trade tensions and a round of tariffs pushed by former President Trump.

What To Expect

The reports from the U.S. will be closely watched by investors, especially in the crypto sphere, as they could affect the market. A surprise to the downside in industrial activity could, for instance, be seen as a sign of slowdown, a factor that has historically seen risk assets, including crypto, correct.

Later this Tuesday, the Conference Board will release the Consumer Confidence Index, with expectations running high. Last month, the index stood at 98.3 but is now projected to decline to 94. A confirmation of this downward trend could reflect growing public concern about the economy, a sentiment that usually sees equities, and by extension crypto, move lower.

New Home Sales And GDP: Mixed Signals For Investors

Another key figure to watch out for this week will be new home sales. In January, they dropped to 657,000 units, but analysts expect a slight recovery this time. Should this rebound be realized, it could be seen as a sign of stability in the housing market, a factor that has historically supported Bitcoin by improving investors’ risk appetite.

Also on Thursday, we’ll see the final reading of Q4 2024 GDP. The previous estimate showed growth of 3.1%, but it’s now expected to be revised down, possibly to 2.3%. A weaker growth reading could reinforce fears of an impending recession later this year, although some pro-crypto analysts suggest that this scenario might lead to looser monetary policy, a move that has historically benefited BTC prices.

Lastly, the PCE Price Index, the Federal Reserve’s preferred inflation gauge, is expected to remain stable. A stable figure would likely calm the markets and pave the way for lower interest rates, a scenario that typically benefits the crypto market.