The Economic Data of the US Could Determine Bitcoin Price This Week!

• Bitcoin’s price dropped by 2% in the last 24 hours, falling below $26,100 and approaching the critical level of $26,000, which represents the lower boundary of the trading range that has been providing support for over a month.
• Crypto traders continue to wait for a decision regarding spot Bitcoin exchange-traded funds (ETFs), and the catalyst for this decision may take months to materialize.
• Beyond Bitcoin, the second-largest cryptocurrency, Ethereum, experienced a 1.5% drop to $1,575. Smaller tokens and alternative cryptocurrencies also exhibited weak performance.

Bitcoin had a rough start to the week, sliding below $26,100. Economic data to watch this week could be critical!

Bitcoin Price Starts the Week on a Downtrend

Bitcoin and other cryptocurrencies dipped on Monday amidst an overall decline in risk assets, approaching significant price levels in the coming days, which seem crucial for cryptocurrencies.

Bitcoin’s price dropped by 2% in the last 24 hours, falling below $26,100 and approaching the critical level of $26,000, representing the lower boundary of the trading range that has been providing support for over a month. Bitcoin couldn’t sustain its recent gains after trading above $27,000 last week.

Trading volume and volatility for cryptocurrencies have historically been low, indicating waning investor interest in this volatile space. Crypto traders continue to wait for a decision regarding spot Bitcoin exchange-traded funds (ETFs), and the catalyst for this decision may take months to materialize.

Meanwhile, Bitcoin continues to move in tandem with the stock market, including indices like the Dow Jones Industrial Average and S&P 500, and is influenced by macro triggers that could change the outlook for interest rates. The question of whether the Federal Reserve will raise interest rates in November and when it might cut rates becomes significant. Higher yields, which are already at generational highs, provide less incentive for investors to allocate funds to risky bets like Bitcoin.

This situation places economic data in focus, as signs of a strong US economy that don’t necessitate Fed rate cuts could lead to a more accommodative stance.

Key US economic data includes

Monday: Dallas Fed manufacturing activity data for September and Chicago Fed National Activity Index data for August.

Significant points later in the week include US Gross Domestic Product (GDP) revisions for the last five years on Thursday and the Personal Consumption Expenditures (PCE) index data, the Fed’s preferred inflation measure, on Friday.

Beyond Bitcoin, the second-largest cryptocurrency, Ethereum, experienced a 1.5% drop to $1,575. Smaller tokens or alternative cryptocurrencies also exhibited weak performance, with Cardano dropping 1% and Polygon losing 2%. Memecoins were also in the red, with Dogecoin down 2% and Shiba Inu losing 1%.