$BTC Bitcoin is correcting slightly below its peak of $123,000, and investors will be closely watching Fed Chair Jerome Powell's speech, unemployment claims data, and global PMI reports this week.

Jobless claims are estimated to have risen to 229,000; a higher figure could signal weakness in the labor market and strengthen Bitcoin's hedging appeal.

PMI reports could influence investor sentiment; weak data could support Bitcoin, while strong figures could support traditional markets.

Crypto markets will be closely watching three US economic indicators released this week. Bitcoin has been undergoing a moderate correction since last week's high above $123,000.

The leading cryptoasset saw a slight increase in the last 24 hours, trading above $118,000, but has lost 2% of its value in the past week. Therefore, this week's macroeconomic developments will be closely monitored by investors.

Fed Chair Powell's Speech

Among the three key economic developments to watch this week, Fed Chair Jerome Powell's opening remarks at tomorrow's Banking Conference are at the forefront.

Powell's remarks will be closely watched ahead of next week's FOMC interest rate meeting. According to CME's FedWatch tool, markets are pricing in a 95.3% chance that policymakers will leave interest rates unchanged at the July meeting.

Powell's speech will be closely watched for potential clues about the interest rate decision to be made on July 30th. The Fed Chair is also facing political pressure from the Trump administration to cut interest rates due to concerns that keeping interest rates too high will negatively impact economic growth.

While Powell remains cautious, some predict he may resign before his term ends in May of next year.

Jerome Powell's removal or resignation from the Fed chair could signal a policy shift toward interest rate cuts, thus signaling a positive signal for Bitcoin and crypto assets.

Lowering interest rates increases liquidity and risk appetite, weakening fiat currencies, which could strengthen demand for Bitcoin as a hedge.

Initial Jobless Claims

Another US economic indicator to watch is initial jobless claims, which reflect the number of citizens who filed for unemployment insurance for the first time last week.

Initial jobless claims totaled 221,000 in the week ending July 12. According to MarketWatch data, economists predict this figure will rise to 229,000 in the week ending July 19.

A rise above 221,000 could raise market concerns about a weakening job market. However, if claims remain low, this could be negative for Bitcoin, as it would signal a strong labor market and negate expectations of a rate cut.

S&P Services and Manufacturing PMI

In addition to initial jobless claims on Thursday, other US economic indicators that could move Bitcoin this week will be the S&P Flash Services and Manufacturing PMI.

The Services PMI, dominated by the services sector, showed growth at 52.9 in June, but slowed slightly compared to May's 53.7. Meanwhile, the Manufacturing PMI rose to a three-year high of 52.9 due to inventory buildup due to tariff concerns.

According to MarketWatch data, July forecasts call for a Services PMI of 53.2 and a slightly lower Manufacturing PMI of 52.4, indicating potential weakness in the manufacturing sector.

📚 Historically, strong PMI data can boost confidence in traditional markets, prompting capital to shift away from Bitcoin. On the other hand, weak data could increase expectations for a rate cut and support Bitcoin as a hedge against weakening fiat currencies.$BTC