Bitcoin started Monday around $77,364 after one of its strongest weekly moves in a long time. The world’s largest cryptocurrency jumped more than 22% in just seven days and briefly came close to the $80,000 mark before slowing down.
The rally was impressive because Bitcoin climbed from around $64,000 in only a few trading sessions. Now, traders are turning their attention to several important U.S. economic events that could decide where Bitcoin goes next.
The biggest event arrives on Wednesday when the U.S. releases its July PCE inflation report along with a revised estimate of second-quarter economic growth. These reports are closely watched because they can influence interest rates, Treasury yields, and investor appetite for risk assets like Bitcoin.
In June, core PCE inflation came in at 3.3%, which is still well above the Federal Reserve’s 2% target. Current estimates suggest July inflation may remain at a similar level. If inflation comes in higher than expected, investors may believe interest rates will stay elevated for longer. That could strengthen the U.S. dollar and put pressure on Bitcoin. On the other hand, a softer inflation reading could support risk assets and help Bitcoin regain momentum.
The revised GDP report will be released at the same time. Earlier estimates showed the U.S. economy grew at an annual rate of 1.5% during the second quarter, down from 2.1% in the first quarter. Investors will be watching closely to see whether the economy is holding up well or showing signs of slowing down.
Another major event comes on Friday when Federal Reserve Chair Kevin Warsh delivers his first keynote speech at the Jackson Hole Economic Policy Symposium. Markets are eager to hear his views on inflation, interest rates, and the broader economy.
The Federal Reserve kept interest rates unchanged in July, but some policymakers argued for higher rates due to ongoing inflation concerns. Because of this, Warsh’s comments could provide important clues about the Fed’s next move.
Bitcoin’s recent surge was also supported by developments in the U.S. Treasury market. The Treasury Department announced plans to increase liquidity-support buybacks for longer-dated government debt starting in September. While this is not quantitative easing, the move helped reduce some long-term yields and improved sentiment across risk markets.
Strong demand from spot Bitcoin ETFs also played a role in the rally. U.S. spot Bitcoin funds recorded hundreds of millions of dollars in net inflows over consecutive days, showing continued investor interest in gaining exposure to Bitcoin.
For now, the $80,000 level remains the key target for bulls. If Bitcoin pulls back, traders are watching the $75,000 area as the first major support zone. Below that, the $70,000 to $72,000 range could become an important area of interest.
The next few days could be crucial. Consumer confidence data arrives on Tuesday, followed by inflation and GDP numbers on Wednesday. The Jackson Hole symposium begins on Thursday, with Warsh’s speech scheduled for Friday.
If inflation cools and the Fed signals a balanced approach, Bitcoin could make another attempt at breaking above $80,000. However, if inflation remains stubbornly high or policymakers sound more aggressive about future rate hikes, Bitcoin could face increased pressure as investors lock in profits after its powerful weekly rally.
