Bitcoin’s Pivotal Week: How U.S. Economic Reports Could Shape Its Future

Bitcoin traders are bracing for a critical week as four major U.S. economic indicators—CPI, Initial Jobless Claims, PPI, and Consumer Sentiment—are set to influence market sentiment. Currently trading NEAR $105,448, Bitcoin's next significant move hinges on these macroeconomic data points. The most consequential event is Wednesday's CPI report, with economists forecasting a 0.3% rise in core CPI, which could disrupt inflation trends and impact Bitcoin's trajectory. This article delves into how these reports could make or break Bitcoin's current momentum.

4 U.S. Economic Reports This Week That Could Make or Break Bitcoin

Bitcoin traders face a pivotal week as four key U.S. economic indicators—CPI, Initial Jobless Claims, PPI, and Consumer Sentiment—prepare to test market sentiment. The cryptocurrency currently hovers near $105,448, with macroeconomic data poised to dictate its next major move.

Wednesday's CPI report stands as the week's most consequential event. Economists anticipate a 0.3% rise in Core CPI, potentially interrupting inflation's cooling trend. MarketWatch projects annual inflation could reach 2.5%, creating a delicate balance for Fed policy decisions.

Andrea Lisi of Lisi Quant Analysis cautions against expecting significant core inflation shifts. The data's interpretation will prove critical—cooling inflation may revive risk appetite for Bitcoin, while hotter numbers could delay rate cuts or prompt further tightening.

Why Cathie Wood Sees Bitcoin at $1.5 Million in Next 5 Years

ARK Invest CEO Cathie Wood predicts Bitcoin could surge to $1.5 million by 2030—a 15x increase from current levels. Her forecast hinges on accelerating institutional adoption and Bitcoin's unique role as a portfolio diversifier.

Speaking on The Diary of a CEO, Wood highlighted growing demand from asset managers overseeing trillions. Companies like Arkham and Metaplanet are now allocating to Bitcoin, signaling a paradigm shift in traditional finance's approach to crypto assets.

Bitcoin's decreasing volatility—as more investors hold long-term—contrasts with traditional assets. Wood compares its disruptive potential to the introduction of equities in the 1600s, noting its uncorrelated price action forces institutions to reconsider risk management frameworks.

Bitcoin Options Signal Gains as Bullish Momentum Builds Ahead of CPI Data

Bitcoin rose over the weekend, trading around $106,600 with a 1.2% gain in the past 24 hours, while the CoinDesk 20 index added nearly 1.7%. The recovery followed a lull in market-moving headlines, contrasting with last week's volatility sparked by public tensions between U.S. President Donald TRUMP and Tesla CEO Elon Musk.

Negative developments, including a hack at Taiwan-based exchange BitoPro and slowing BTC network activity, failed to dampen sentiment. Meanwhile, Hong Kong's Hang Seng index jumped 1.6% as traders reacted to Trump's Optimism about U.S.-China trade talks.

China's deflation concerns persist, with consumer prices falling 0.1% year-over-year in May and factory gate prices dropping 3.3%. The People's Bank of China has responded with rate cuts and liquidity injections—measures that may ultimately benefit crypto markets.

Tokyo Fashion Brand ANAP to Invest ¥11.5 Billion in Bitcoin

ANAP Holdings, a Tokyo-listed casual fashion retailer, has secured ¥11.5 billion in a third-party allocation fully subscribed by Capital Typhoon fund. The investment marks a bold move into digital assets, with ¥8 billion settled directly in bitcoin and the remaining ¥3.5 billion in yen to be converted to BTC.

The company plans to hold its Bitcoin position long-term, signaling strategic confidence in cryptocurrency as a CORE component of its treasury strategy. This allocation represents one of the largest corporate Bitcoin commitments from Japan's retail sector to date.

Bitcoin Faces Short-Term Pullback Before Potential $140K Breakout

Bitcoin's march toward a new all-time high may encounter a temporary setback, with analysts forecasting a dip to the $100,000–$104,000 range before resuming its upward trajectory. The cryptocurrency currently trades above $107,000, consolidating within a narrow band after recent volatility fueled by macroeconomic uncertainty and political developments.

Market attention now turns to Wednesday's U.S. Core CPI release, expected to show 2.9% annual inflation. Swissblock analysts warn the data could trigger fresh volatility, particularly if figures exceed expectations and dampen hopes for near-term rate cuts. 'The market appears to be reloading rather than retreating,' observes one trader, noting Bitcoin's growing sensitivity to macroeconomic indicators.

India's Crypto Tax Crushes Profits, Bitcoin ETFs Emerge as Tax-Saving Alternative

India's cryptocurrency investors face mounting pressure as the government's stringent tax policies stifle market growth. Despite robust Bitcoin trading volumes exceeding ₹1 crore, a 30% capital gains tax and 1% TDS on every trade—regardless of profitability—have created a hostile environment. Losses cannot offset other income or carry forward, and holding periods don't influence tax rates.

Bitcoin ETFs now offer a loophole. Classified as foreign mutual funds rather than VIRTUAL Digital Assets, they avoid the 1% TDS and qualify for a 12.5% long-term capital gains tax if held over 24 months—less than half the rate applied to direct crypto investments. This regulatory arbitrage is drawing savvy investors seeking relief from India's punitive crypto tax regime.