US Economic Events to Shake Bitcoin and Ethereum This Week
The US economic calendar is condensed this week due to Monday's Labor Day holiday, but several key data points could still significantly influence Bitcoin (BTC) and Ethereum (ETH) prices. Bitcoin's recent weakness, coupled with Ethereum's loss of support at $4,400, makes these releases particularly impactful.
Key US Economic Indicators for Crypto Traders
Here's a breakdown of the US economic data releases to watch this week:
JOLTS (Job Openings)
The Bureau of Labor Statistics will release the job openings report on Wednesday, September 3. The previous JOLTS report indicated 7.4 million job openings in June, consistent with May's figures.
Economists anticipate July's data to align closely with June, signaling a stable labor market. This could reinforce the Federal Reserve's (Fed) “higher for longer” policy stance, strengthening the dollar and potentially capping liquidity. Consequently, Bitcoin might face slight downward pressure.
ADP Employment
Thursday brings the ADP employment report, a comprehensive private sector survey. July's report showed 104,000 new jobs, exceeding expectations.
However, economists project a slowdown to 75,000 new jobs in August. A weaker ADP print could indicate cooling labor demand, weakening the dollar and easing yields. This scenario often boosts liquidity-sensitive assets like Bitcoin and crypto.
Traders tend to view weaker ADP data as bullish for digital assets, anticipating increased risk appetite. However, potential recession fears sparked by a significant slowdown could introduce short-term volatility before any longer-term upside materializes. Platforms like Codeum recognize the importance of monitoring such economic indicators in order to take the right measures to safeguard assets.
Initial Jobless Claims
Also on Thursday, initial jobless claims data will be released. In the week ending August 23, there were 229,000 initial jobless claims. Economists anticipate around 231,000 filings for the past week.
An increase in jobless claims may signal economic weakness, potentially leading the Fed to adopt a more accommodative monetary policy. This could weaken the dollar and enhance Bitcoin’s attractiveness as an alternative asset. However, if the rise is perceived as temporary, the impact on Bitcoin might be limited.
Employment Report
The week culminates with the US employment and unemployment reports on Friday. These are critical indicators of overall economic health.
The employment report is expected to show 75,000 new jobs, slightly up from 73,000 in the previous month. Simultaneously, the unemployment rate is projected to increase from 4.2% in July to 4.3% in August.
This scenario suggests a resilient labor market with improving hiring, coupled with a slight increase in unemployment, indicating some underlying slack.
Markets often interpret this as neutral-to-dovish, where job growth is occurring, but rising unemployment hints at softening conditions. For Bitcoin and crypto, it could support rate-cut expectations, offering a mildly bullish outlook despite headline job gains.