US Economic Data Drops This Week

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• Key US economic data this week, including GDP and PMI, will influence stock and crypto market sentiment.
• Bitcoin shows resilience, but broader economic concerns could lead to sideways trading in the coming weeks.

This week’s release of crucial US economic data, including PMI, consumer confidence, housing sales, GDP, and PCE, will significantly impact financial markets. As the deadline for President Trump’s reciprocal tariffs draws near, these reports will give investors a clearer picture of how resilient the US economy is. 

A decline in consumer confidence or GDP could spark a “risk-off” environment, affecting stocks and cryptocurrencies. On the other hand, stronger-than-expected housing and inflation data could support risk assets like crypto.

Bitcoin and other cryptocurrencies were trading higher on Monday, March 24, 2025, amid the release of key economic data and market expectations. It surged by nearly 3.33%, reaching around $86,904, after surpassing the $87,000 mark over the weekend. In the last 24 hours, Bitcoin’s trading ranged between $84,174.10 and $87,022.08, with a 24-hour trading volume of $17.98 billion. 

Economic Indicators to Watch

Several key economic reports will be released this week, providing insights into business activity, consumer sentiment, and inflation. The S&P Global PMI figures will offer a snapshot of manufacturing and service sector activity. 

A decline in PMI could signal a slowdown, influencing investor sentiment and weighing on riskier assets, including cryptocurrencies. Analysts expect the Composite PMI to dip slightly to 51.5, while the Services PMI could show a minor recovery.

The Conference Board’s Consumer Confidence Index will be closely watched, with experts forecasting a drop to 94.4 from 98.3 last month. A weakening consumer outlook often leads to a drop in stock prices and could hurt investor sentiment in the crypto market. 

Additionally, the release of new home sales data will indicate the health of the housing sector. A slight rebound is expected, which may suggest stability in the economy and boost investor confidence in risk assets like cryptocurrency.

GDP Growth and Inflation Data

The most anticipated release this week is the final estimate for US GDP growth in the last quarter. Analysts expect a slowdown from 3.1% to 2.3%, which could raise concerns about the economy’s momentum.

A weaker GDP reading could trigger caution among investors, leading to lower demand for stocks and cryptocurrencies. This decline in economic growth might amplify recession fears, especially as the US edges closer to implementing its new tariffs.

Inflation data, particularly the Core PCE Price Index, will also be in focus. A stable reading at 0.3% is expected, with any changes in inflation impacting expectations for future Federal Reserve policies. If inflation remains under control, it may encourage risk-taking, which could be positive for cryptocurrencies. Conversely, a spike in inflation could heighten fears of more aggressive rate hikes, possibly dampening investor appetite for high-risk assets like Bitcoin.

Implications for Crypto and Stock Markets

The release of this economic data will set the tone for the rest of the week; if reports show signs of economic slowing or mounting inflation, a “risk-off” sentiment could dominate, affecting both stocks and cryptocurrencies. A significant drop in consumer confidence or GDP growth could cause a shift toward safer assets, leading to declines in the equity and crypto markets.

However, stronger-than-expected housing data or a stable inflation outlook could provide some support for risk assets, possibly lifting crypto prices. For example, the potential stability in the housing sector might offer a sense of economic resilience, encouraging investors to continue engaging with higher-risk investments like cryptocurrency.

In particular, Bitcoin and other cryptocurrencies may face heightened volatility in the coming days as market participants react to the latest economic reports. Although President Trump’s stance on crypto has been supportive, any broader economic uncertainties or tariff fears could make investors more cautious. 

Bitcoin has strong support at $81,600, with resistance at $87,500. While it is still nearly 20% below its all-time high, Bitcoin’s market cap stood at approximately $1.72 trillion. Other cryptocurrencies also saw gains, with Solana (SOL) rising by 6%, Ethereum (ETH) up by 3%, Ripple (XRP) increasing by 3%, and Binance Coin (BNB) edging up by 0.33%.