Bitcoin is struggling this week, sliding to $82,000 despite Trump’s efforts to boost sentiment. Key US economic data, including job openings, inflation reports, and consumer confidence, will shape BTC’s next move. If inflation stays hot and jobless claims rise, risk assets like Bitcoin could take another hit. Moreover, the current sentiment leans negative, with recession fears creeping in as Trump’s Department of Government Efficiency (DOGE) cuts bite deeper into government spending.
With the Fed meeting just around the corner, all eyes are on whether inflation surprises again—will Bitcoin take another hit?
Here’s what could move the needle:
Job Market Strength Could Weigh on Bitcoin
The Job Openings and Labor Turnover Survey (JOLTS) arrives on March 11, revealing the state of US employment. A strong report, showing job openings above 7.6 million, could fuel dollar strength and lower Bitcoin’s appeal. However, a weaker reading might raise concerns over economic slowdown, increasing expectations for Fed rate cuts and boosting BTC’s safe-haven narrative.
Inflation Data Holds the Key
The Consumer Price Index (CPI), dropping on March 12, is a major trigger for risk assets. If inflation stays hot at 2.9% or above, rate cuts could be delayed, strengthening the dollar and pressuring Bitcoin. A softer CPI, on the other hand, might revive bullish sentiment by signaling potential monetary easing. Traders are already speculating that a lower-than-expected core inflation number could spark a BTC rally.
Jobless Claims and Producer Prices Add More Volatility
On March 13, Initial Jobless Claims and the Producer Price Index (PPI) will provide further economic insights. Fewer-than-expected jobless claims could reinforce dollar dominance, drawing investors toward traditional markets and away from Bitcoin. A lower PPI reading, however, may ease inflation concerns and improve BTC’s outlook as an inflation hedge.
Consumer Sentiment Could Sway Market Mood
The University of Michigan’s Consumer Sentiment Index survey, due on March 15, will gauge economic confidence. A strong number might shift focus to equities, reducing Bitcoin’s attractiveness. But if sentiment drops below expectations, BTC could gain as investors seek a hedge against economic uncertainty.
With a heavy lineup of macroeconomic events, Bitcoin traders are bracing for potential swings. Whether BTC sees renewed momentum or further downside will largely depend on how these data points influence Federal Reserve expectations.
