Bitcoin Holds $90,000 as Traders Brace for Key US Economic Events

Bitcoin bulls continue to defend the $90,000 psychological level despite heightened volatility driven by geopolitical tensions. With expectations around Federal Reserve rate cuts shifting, traders are closely watching a packed US economic calendar that could significantly influence sentiment across crypto markets.

Macro Volatility Puts Focus on US Data and Fed Expectations

As uncertainty grows around the timing and scale of future rate cuts, upcoming economic data releases and major political speeches are expected to drive sharp moves in Bitcoin and major altcoins. Crypto markets remain highly sensitive to macroeconomic signals, particularly those that affect the US dollar and bond yields.

Trump’s Davos Speech Seen as Potential Market Catalyst

President Donald Trump is scheduled to speak at the World Economic Forum in Davos on January 21 at 1:30 PM ET, an event widely expected to move markets. Given his history of unscripted remarks on trade, tariffs, and geopolitics, investors are bracing for potential volatility. With the largest-ever US delegation attending Davos, Trump’s comments could touch on tariff disputes, military considerations, or economic policy, all of which may impact global risk appetite and the strength of the US dollar.

Dollar Strength Could Pressure Bitcoin

If Trump signals a more hawkish stance on trade or geopolitics, the US dollar could strengthen, weighing on Bitcoin and other risk assets. Conversely, pro-growth rhetoric or crypto-friendly signals could ignite a short-term rally across digital assets.

Jobless Claims Offer Insight Into Labor Market Strength

The Initial Jobless Claims report, scheduled for January 22 at 1:30 PM ET, will provide a fresh snapshot of US labor market conditions. Economists expect claims to rise slightly to 203,000 for the week ended January 15, compared with 198,000 previously. Recent data has consistently surprised to the downside, reinforcing the view of a resilient jobs market.

Strong Labor Data May Delay Rate Cuts

Lower-than-expected jobless claims typically support a stronger dollar and higher yields, which can pressure Bitcoin and other risk-on assets. Analysts note that, when adjusted for labor force size, claims remain near all-time lows, suggesting little evidence of an impending recession. Another strong reading could dampen crypto sentiment and extend pullbacks from recent highs.

Inflation Data in Focus With Core PCE Release

Also on January 22 at 1:30 PM ET, the Core PCE Price Index, the Federal Reserve’s preferred inflation gauge, is expected to come in at 0.2% month over month, up from 0.1%. This data will play a key role in shaping expectations for rate cuts in 2026, with higher inflation potentially pushing easing further out.

Inflation Surprises Could Drive Crypto Volatility

Persistent inflation above the Fed’s target could weigh on risk sentiment, as higher yields draw capital away from speculative assets like crypto. Market observers have increasingly linked PCE surprises to spikes in crypto volatility, making this release particularly important for short-term Bitcoin price action.

Consumer Sentiment Reflects Retail Appetite

The Revised University of Michigan Consumer Sentiment Index for January, due on January 23 at 3:00 PM ET, is expected to remain unchanged at 54.0. This level represents historically weak sentiment, reflecting consumer strain from high costs and economic uncertainty. Retail participation is a key driver of crypto rallies, making this data relevant for broader market momentum.

Weak Sentiment Could Limit Upside

If consumer sentiment improves unexpectedly, it could signal stabilizing conditions and support Bitcoin demand. However, continued weakness may reinforce caution among retail investors, leaving institutions as the dominant force in the market and potentially limiting upside.

Bitcoin Trades Near $92,600 Amid Heightened Uncertainty

At the time of writing, Bitcoin was trading around $92,663, down nearly 3% over the past 24 hours. With multiple high-impact US economic events ahead, traders are preparing for increased volatility as macro signals continue to shape crypto market direction.