Bitcoin (BTC) and Altcoin Market Await US Initial Jobless Claims and Core PCE Data This Week

Analysts are on the lookout for two key economic data releases in the US this week. On February 27, the Department of Labor will post the Initial Jobless Claims.

Economists and market participants are keeping a close eye on two important US economic data releases this week. The Department of Labor will announce Initial Jobless Claims on February 27, and the Bureau of Economic Analysis (BEA), an agency within the Department of Commerce, will publish Core PCE (personal consumption expenditures) on February 28. These events could quickly drive volatility in Bitcoin and major altcoin prices.

Initial Jobless Claims

Initial jobless claims highlight the number of individuals filing for unemployment benefits for the first time within a specified period. This data significantly impacts US dollar and bond price movements.

As Coin Bureau notes, a lower-than-expected reading indicates a robust labor market, decreasing the likelihood of the Federal Reserve engaging in monetary easing. In such a scenario, Bitcoin (BTC) and the broader cryptocurrency market may continue their ongoing downtrend.

Conversely, an increase in the figures signals weakness in the labor sector, which the Federal Open Market Committee (FOMC) could interpret as a sign for a rate cut. This is typically bullish for the crypto market.

According to Forbes, monetary easing or rate cuts tend to weaken the US dollar, leading to increased demand for risk-on assets, such as crypto.

In the week ending February 15, the labor department reported an increase in unemployment insurance filings to 219K, as per FXStreet data. This was notably higher than the expected 214K and the previous week's 214K, with a seasonally adjusted insured unemployment rate of 1.2%.

Core PCE

The BEA uses the PCE to gauge inflation and the purchasing trends of US households or consumers. Core PCE tracks price changes in goods and services, excluding the volatile food and energy components.

Coin Bureau observed signs of stickiness and a slight uptrend in the Core PCE. Sticky inflation occurs when the prices of goods and services change slowly and persistently. This makes it difficult to control inflation because prices are not immediately responsive to changes in supply and demand dynamics but rather depend on regulations, long-term consumer habits, or contracts. All of these increase the احتمال for monetary easing following the next FOMC meeting in March.

Once again, expectations for monetary easing amid cooling inflation could drive the price of digital assets higher. In contrast, the higher احتمال for monetary tightening due to hotter inflation numbers could prompt a bearish response from the crypto market.

Analysts also note that President Donald Trump's flurry of executive orders, especially those regarding tariffs since assuming office for his second non-consecutive term, could inject uncertainty into the markets and dampen hopes for lower inflation.