This week, Bitcoin (BTC) finds itself at the center of attention in the financial markets

This week, Bitcoin (BTC) finds itself at the center of attention in the financial markets as three major economic indicators in the United States

This week, Bitcoin (BTC) finds itself at the center of attention in the financial markets as three major economic indicators in the United States could disrupt its trajectory.

Since the beginning of the year, the correlation between Bitcoin and American macroeconomic data has intensified, making the crypto sensitive to global economic fluctuations.

As BTC stagnates just below the $100,000 mark, these indicators could well be the catalyst for change.

Inflation: a double-edged sword

The Consumer Price Index (CPI) in the United States, expected this Wednesday, will be a key moment for assessing the state of inflation.

According to economists polled by Dow Jones, CPI is expected to rise by 0.3% in October, slowing down from the 0.4% increase in the previous month.

Moreover, core inflation, which excludes the volatile prices of energy and food, will also be scrutinized. This figure is anticipated to remain stable at 3.3% on a yearly basis.

A lower-than-expected inflation could boost Bitcoin's value as it reduces the chances of immediate interest rate hikes by the Federal Reserve.

However, if inflation proves to be stickier than expected, it could limit the extent of Bitcoin’s movements.

The labor market: a barometer of the economy

Initial claims for unemployment benefits, to be released on Thursday, will provide a snapshot of the American economic health.

The claims are expected to rise slightly to 224,000, signaling a slowdown in the labor market.

However, a stronger-than-expected labor market could put pressure on Bitcoin, with investors interpreting this as a signal for potential monetary tightening by the Federal Reserve.

Thursday will also mark the release of the Producer Price Index (PPI), an indicator often regarded as the “thermometer” for costs in the production chain.

According to Dow Jones, the PPI is expected to increase by 0.2% in October, slowing down from the 0.4% rise in the previous month.

Furthermore, core PPI, which excludes the volatile prices of energy and food, is anticipated to remain stable at 2.8% on a yearly basis.

However, this release comes at a strategic moment, just before the Fed meeting in December. A significant rise in the PPI could prompt the central bank to adopt a stricter monetary policy, which could weaken demand for Bitcoin in the short term.