3 Major Factors That Could Shape Bitcoin and Crypto Prices This Week

3 major factors that could shape bitcoin and crypto prices this week are already coming into play as crypto markets enter a shortened but data-packed trading period. Investors are closely tracking major US economic releases that could trigger fresh volatility. After giving back recent gains, digital assets like Bitcoin and Ethereum remain highly sensitive to macroeconomic signals, keeping traders alert for potential price swings.

Here are three important drivers investors should monitor closely.

1. PCE Inflation Report May Shift Rate Expectations

The spotlight is firmly on the Personal Consumption Expenditures (PCE) inflation data — the preferred inflation gauge of the Federal Reserve.

Last week’s CPI figures showed slightly cooler inflation, briefly boosting risk assets. However, crypto failed to hold those gains, signaling fragile sentiment.

Analysts at Goldman Sachs now expect core PCE inflation to come in hotter than previously forecast, driven by rising prices in tech hardware and electronics. These components carry more weight in PCE than CPI.

If inflation remains stubborn, the Fed may delay interest rate cuts — a development that typically pressures cryptocurrencies and other high-risk assets.

2. Packed US Economic Calendar Could Add Volatility

Although US markets are closed Monday for Presidents’ Day, the rest of the week brings several market-moving reports:
• Employment updates
• Retail sales figures
• Durable goods orders
• Federal Reserve meeting minutes
• Fourth-quarter GDP data

These releases will offer fresh insight into consumer strength and overall economic momentum. Any surprises could quickly ripple through both traditional markets and crypto.

Traders will also listen closely to speeches from multiple central bank officials for clues on future monetary policy.

3. Crypto Market Pulls Back After Failed Breakout

Crypto prices have already softened heading into the week. Total market capitalization has declined, with Bitcoin slipping back below recent highs and remaining stuck in a tight trading range.

Ethereum has retraced sharply, while most altcoins continue to struggle, reflecting cautious investor mood.

With global uncertainty still elevated, analysts warn that price swings could intensify as traders react to each new data point.

Final Thoughts

This week could prove pivotal for crypto direction. Inflation data, Fed signals, and broader economic indicators will likely determine whether Bitcoin regains momentum — or whether markets face another pullback.

For now, patience and risk management remain key.

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