Bitcoin investors are bracing for significant price fluctuations this week as three major US economic events converge to shape market sentiment. Federal Reserve Chair Jerome Powell’s testimony, labor market data, and inflation figures will likely overshadow ongoing geopolitical tensions in influencing cryptocurrency valuations.
Powell’s scheduled testimony before the House Financial Services Committee represents the week’s foremost event. Market participants will scrutinize his commentary on interest rate policy, inflation trajectory, and broader economic health for signals about the Fed’s monetary strategy.
Recently released initial jobless claims data showed 245,000 new filings—surpassing expectations—and potentially signals economic softening. This labor market development heightens market sensitivity to broader economic indicators with implications for future Fed decisions and Bitcoin price movements.
The impending release of May’s Personal Consumption Expenditures (PCE) data stands as another critical volatility catalyst. As the Federal Reserve’s preferred inflation metric, higher-than-expected readings could strengthen the US dollar and pressure Bitcoin prices, while softer data may rekindle expectations for interest rate reductions.
Although geopolitical risks—including potential disruptions in the Strait of Hormuz—add market uncertainty, analyst Peter Tarr notes macroeconomic developments will likely dominate Bitcoin’s near-term trajectory barring significant escalations. Tarr suggests Powell’s testimony could effectively redirect market focus toward fundamental US economic indicators.