US Economic Indicators This Week May Trigger Bitcoin Volatility

The US Labor Department will release Initial Jobless Claims data on Thursday, May 23. Analysts expect 232,000 new claims, slightly higher than the previous 229,000, according to Trading Economics. This indicator tracks the number of first-time applications for unemployment benefits.

Jobless Claims reflect labor market conditions. A higher number can suggest weakening employment trends. If confirmed, it may push investors toward Bitcoin as a hedge against possible economic instability. On the other hand, lower claims could support the US dollar and reduce demand for Bitcoin.

A market analyst wrote, “…A core labor market indicator that could shift market expectations on Fed policy.” Recent data shows no strong signs of labor market stress. Still, crypto markets remain sensitive to changes in labor-related data.

Services PMI Release May Shift Risk Sentiment

The Services Purchasing Managers’ Index (PMI), published monthly by S&P Global, measures economic activity in service industries such as transport, finance, and hospitality. A reading above 50 indicates growth, while a number below 50 signals contraction.

In April, the Services PMI stood at 50.8. For May, forecasts suggest the same level. Any reading below 50 could indicate a slowdown in the services sector. That may prompt risk-off sentiment in traditional markets and push some investors toward Bitcoin.

Because services make up a large part of the US economy, crypto traders watch this PMI closely. It can influence the dollar’s strength and overall investor behavior. This index, alongside other US economic indicators, will likely contribute to price shifts in crypto markets this week.

Thursday’s release includes both Services and Manufacturing PMIs, making it a potential day of heightened market activity.

Manufacturing PMI Sheds Light on Industrial Pressure

S&P Global will also release the US Manufacturing PMI on Thursday. This index tracks business activity across the manufacturing sector. A reading above 50 means expansion, while a reading below 50 suggests contraction.

April’s Manufacturing PMI came in at 50.2. Analysts forecast May’s flash PMI near 49.8. If the number drops below 50, it may indicate continued pressure from tariffs and supply chain challenges. Such readings can reflect weakening industrial demand.

Bitcoin traders track this US economic indicator as it signals economic momentum and risk appetite. A stronger manufacturing sector may support the dollar, which can put pressure on Bitcoin. A lower PMI, however, can create opportunities for alternative assets.

A user on X noted,

Existing Home Sales Forecast Points to Slowing Demand

The National Association of Realtors will report Existing Home Sales for April later this week. Forecasts show a drop to 700,000 sales, down from March’s 724,000. This US economic indicator reflects the number of completed transactions for pre-owned homes, annualized.

A drop in Existing Home Sales may suggest a slowdown in consumer activity. High mortgage rates and tight inventory continue to weigh on housing. If the number comes in below expectations, it could signal broader economic pressure. Some investors may view Bitcoin as a hedge in such a case.

According to a user on X,

“April Existing Home Sales are expected to reflect the housing market’s response to high interest rates and limited inventory.”

This data, combined with other US economic indicators like Jobless Claims and PMIs, gives a wider picture of market health. If housing data stabilizes or improves, it may support the dollar and limit short-term interest in Bitcoin.