Crypto markets brace for impact with three US economic signals in the pipeline this week. The expectation comes as the influence of economic indicators on Bitcoin (BTC) and the broader market grows.
Meanwhile, Bitcoin price continues to show strength, holding well above the $118,000 threshold despite a drop in BTC dominance and sell-off concerns.
US Economic Signals To Watch This Week
Key among the top three US economic signals to watch this week will be the Opening Remarks from Federal Reserve Chair Jerome Powell at the Banking Conference on Tuesday.
Powell’s remarks will come barely a week after the US CPI (Consumer Price Index) showed that inflation rose at an annual rate of 2.7% in June.
The remarks will also come just over a week before the next FOMC meeting, with interest bettors seeing a 95.3% chance policymakers will keep rates unchanged.
Accordingly, traders will be watching Powell’s remarks for economic signals, hoping they will provide insight about the interest rate decision due on July 30. However, even amidst this anticipation, another concern arises.
Powell has been facing political pressure from the Trump administration to cut interest rates amid concerns that keeping them too high hurts economic growth.
While he maintains his stance on caution, some anticipate a possible resignation ahead of the maturity of his term, which is due to end in May 2026.
RUMOR MILL SPINNING
Fed Chair Jerome Powell reportedly under pressure from the Trump team — may resign soon over refusal to cut rates.
Keep a close eye on the markets. Something’s brewing. pic.twitter.com/XKvC2M6kS2
— Wall Street Gold (@WSBGold) July 21, 2025
RUMOR MILL SPINNING 
Word is he could announce it Tuesday in his next speech.The Fed chair has also been criticized by the White House over the agency’s $2.5 billion building renovation. Government officials have called for an audit, amid speculation that it could yield enough substance to terminate him for cause.
Notably, the ouster or resignation of Jerome Powell as Fed chair could be bullish for Bitcoin and crypto, as it could mark a policy pivot toward rate cuts.
Cutting interest rates increases liquidity, boosts risk appetite, and weakens fiat, driving demand for Bitcoin as a hedge.
Initial Jobless Claims
Another US economic signal to watch is the initial jobless claims, which show the number of citizens who filed for unemployment insurance for the first time last week. This US economic indicator is crucial, given the labor market’s growing influence as a Bitcoin macro.
Initial jobless claims were 221,000 for the week ending July 12. Based on data on MarketWatch, economists project an increase to 229,000 for the week ending July 19.
A spike in initial jobless claims, above the previous 221,000 reading, could spook markets about weakening jobs.
However, if claims stay low, it would signal a strong labor market, which would be bearish for Bitcoin as it would sidestep rate cut hopes.
S&P Flash Services and Manufacturing PMI
Along with the initial jobless claims on Thursday, other US economic signals that could move Bitcoin this week are the S&P Flash Services and Manufacturing PMI.
The Services PMI, reflecting the dominant services sector, was 52.9 in June, signaling expansion but a slight slowdown from May’s 53.7. Meanwhile, manufacturing PMI rose to 52.9, a three-year high, driven by inventory buildup amid tariff concerns.
According to MarketWatch data, forecasts for July suggest that the PMI of services is at 53.2 and the manufacturing PMI is slightly below 52.4, indicating potential softening in manufacturing.
Historically, strong PMI readings boost confidence in traditional markets, potentially diverting capital from Bitcoin. On the other hand, weaker readings can fuel rate cut expectations, supporting Bitcoin as a hedge against fiat weakening.
As of this writing, Bitcoin was trading for $118,286, up by a modest 0.35% in the last 24 hours. Analysts highlight falling Bitcoin dominance, an outcome that often precedes an altcoin season.
Bitcoin miners and whales are also dumping BTC, whilst the UK government teases with a Bitcoin sell-off. These factors could exacerbate volatility in the Bitcoin market this week.
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