Expectation of weak US economic reports holds back bitcoin growth — Coinotag

Bitcoin may face increased volatility this week amid weak macroeconomic statistics from the US. The Conference Board's Leading Economic Index (LEI) points to a continued downturn, reinforcing fears of slowing GDP growth.

Sectoral indicators confirm the weakening bias. The Manufacturing PMI is projected to fall to 49.3 from 50.2, signaling a possible recession in the industry. The services business activity index is also expected to be lower at 52.9 versus 54.4 in March. This divergence reflects weakness in the real economy, while the service sector is relatively resilient. Such dynamics reduce interest in risky assets, including BTC.

Meanwhile, the University of Michigan's consumer sentiment index is expected to remain at 50.8, close to its all-time lows. This suggests continued pessimism among retail investors.

Bitcoin is trading around $87,600 after gaining 2.7% overnight. However, macroeconomic pressure remains and could affect short-term sentiment in the crypto market, as reported by Coinotag.