Crypto markets are closely monitoring key US economic data this week to assess the health of the nation’s economy. As February commences, critical labor market reports — closely watched by the Federal Reserve—are on the calendar.

Given the potential impact on portfolios, traders may adjust their strategies around these upcoming events.

ISM Manufacturing

The Institute of Supply Management (ISM) will release the January ISM Manufacturing data on Monday, February 2, marking the first business day of the month. This nationwide survey of purchasing managers at manufacturing firms is widely viewed as a critical gauge of the US economy’s health.

The previous ISM manufacturing index was 49.3, with a consensus forecast of 50.0 for January. Readings above 50 indicate expansion, with the positive data boosting investor confidence in the economy’s strength. This could lead to increased risk appetite in the market.

If the ISM manufacturing index falls below the consensus of 50.0, it would suggest a contraction in the manufacturing sector. This could lead to concerns about the economy’s overall health and potentially negatively impact investor sentiment.

As a result, Bitcoin and other risk assets may experience increased volatility and downward pressure as investors seek safer assets during economic uncertainty.

“If ISM Manufacturing PMI rises, US stocks and the dollar strengthen, while crypto may drop due to tighter monetary policy expectations. If it falls, stocks can weaken, IHSG may be pressured by global sentiment, and crypto can go up or down based on risk sentiment and liquidity,” a user on X commented.

Job Openings

On Tuesday, February 4, the US Bureau of Labor Statistics (BLS) will release the December Job Openings and Labor Turnover Survey (JOLTS). The publication will provide data about the change in the number of job opening

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Author: Lockridge Okoth