#Upcoming CPI Data Release#  4 US Economic Indicators Affecting the Crypto Market This Week.

This week, all eyes are on Bitcoin BTCUSD
as crypto market participants await important US economic indicators. President Trump’s economic policies in particular have made Bitcoin and crypto markets sensitive to macroeconomic data and related issues.
While the leading cryptocurrency is hovering above $100,000, its upside potential depends on the following US economic data.
US Economic Data to Follow This Week
Here are the US economic indicators that will interest crypto traders and investors this week.
CPI
‘We start the week with a Monday that is newsless, followed by the main focus of the week, CPI, on Tuesday.’ This is a common sentiment among cryptocurrency market participants who follow this week’s US economic calendar.
Perhaps the most critical US economic indicator for Bitcoin and crypto traders is the US CPI (Consumer Price Index) for April, which is due out on Tuesday.
China’s CPI inflation came in at 0.1% in April, down from a 0.4% decline in March, and all eyes are on the US CPI this week as the country continues to inject capital.
The April CPI comes after the FOMC meeting and Fed Chair Jerome Powell’s comments last week. As expected, the Fed’s decision to keep interest rates on hold drew attention to the bank’s accompanying statement and Fed Chair Powell’s press conference.
According to Powell, uncertainty about the economic outlook has increased further, with Tuesday’s CPI inflation data becoming a key indicator.
In particular, the Fed is concerned about U.S. trade policies, and Powell hinted that the Fed may be prepared to wait a long time.
However, amid the trade chaos, some say the U.S. CPI could remain above 3% for the rest of the year.
The US CPI forecast is 2.3%, compared with 2.4% in March. The March reading came in below the expected 2.5%, suggesting that inflation in the US is cooling.
If the trend continues in April and shows that inflationary pressures are easing, it could increase calls for the Fed to cut interest rates soon. Such action could weaken the dollar but increase interest in Bitcoin and cryptocurrencies.
Conversely, if the CPI figures show that inflationary pressures are accelerating and come in above the 2.4% CPI rate in March, it could increase calls for the Fed to extend its current monetary policy stance. Such an outcome could help the dollar and create a sentiment away from Bitcoin.
Initial Jobless Claims.
Another U.S. economic indicator to watch this week is initial jobless claims, which detail the number of U.S. citizens who filed for unemployment benefits for the first time last week.
In the week ending May 3, initial jobless claims totaled 228,000. That followed 241,000 claims in the week ending April 26 and was below the 230,000 projected, a decline that exceeded market expectations.
‘There are no signs of labor market stress in the last week of April. Jobless claims—both initial and continuing—are stable, well in line with the past 3 years,’
Notably, a lower-than-expected reading is generally considered positive or bullish for the USD and therefore bearish for Bitcoin.
In this context, the decline signaled a healthier employment outlook in the US. It was also interpreted as a positive sign for the economy, indicating an improvement in the labor market.
If the trend continues, initial jobless claims for the week ending May 10 could come in below analysts’ median estimate and projections of 227,000. This could put pressure on risk assets like Bitcoin.
PPI
Another piece of data added to the list of US economic indicators this week is the US PPI (Producer Price Index), which tracks price changes seen by companies.
The March PPI fell 0.4% on a monthly basis, falling short of the 0.2% increase expected and indicating that inflation pressures are easing. On an annual basis (YoY), the PPI came in at 2.7%, falling short of the 3.3% estimate.
The lower-than-expected PPI could boost optimism for Fed rate cuts and potentially support riskier assets like Bitcoin. However, Trump’s tariff policies are creating volatility due to their ability to trigger deflationary trends.
‘Hot CPI and PPI data this week could trigger a short-term decline in the S&P 500 (2%–5% pullback) and Bitcoin (5%–10% decline) on fears of tighter Fed policy and rising yields. However, cooling geopolitical tensions (India/Pakistan and Russia/Ukraine) and potential US/China trade deal progress could cushion losses by boosting risk appetite and limit commodity-driven inflation, allowing the S&P 500 and BTC to recover quickly.’
Consumer Confidence
The Consumer Confidence report is also an important watch point, reflecting whether the market is pessimistic or optimistic. Therefore, the May 16 preliminary data will be a critical watch for traders and investors to assess sentiment shifts.
In April 2025, the University of Michigan’s Consumer Confidence Index fell to 52.2, an 8% drop from 57 in March, reaching a nearly five-year low.
The decline suggests that consumer spending will decline due to inflation fears (expectations rose to 6.5%) and trade policy uncertainty stemming from Trump’s tariffs. Lower spending could limit liquidity for riskier assets like cryptocurrencies, potentially triggering a correction in Bitcoin’s price.