Cryptocurrency investors encountered meaningful data in 2021 as interest rate hikes took center stage. Beyond PMI, CPI, and PCE figures, employment and consumption data have become essential to track. This increased sensitivity of cryptocurrencies to macroeconomic factors, particularly in a rising interest rate environment, underscores the changing landscape. Recently, the U.S. Retail Sales data was released.
Latest U.S. Data Updates
The Fed will announce its interest rate decision tomorrow. Amid strong expectations for a 50 basis point cut, it remains unclear how much the Fed will consider recession fears. Employment is weakening, and as highlighted in recent days, corporate bankruptcies are alarmingly high. As a result, analysts from major firms like JPMorgan and Goldman are focusing more on the health of the U.S. economy than on potential interest rate cuts.
Rising Concerns Over Economic Stability
The reality is that the U.S. economy is suffering in an environment of battling inflation. However, receiving abnormal signals can trigger alarming concerns regarding recession. This necessitates a broader perspective in monitoring the markets, including data from PMI, sales, and production.
Core Retail Sales measure American citizens’ demand for products excluding automobiles. If sales exceed expectations, it indicates a healthy or recovering economy. Conversely, falling short of expectations, especially with negative values, signifies that consumers are reluctant to spend. This translates to a weakening U.S. economy, which poses additional challenges for the Fed amidst potential rate cuts.
- Core Retail Sales Reported: 0.1% (Expectation: 0.2% Previous: 0.4%)
The incoming data is not favorable for the U.S. economy and may support recession fears. So far, this has not led to a significant downturn for Bitcoin 
$104,964.
