Bitcoin faces uncertainty amid upcoming U.S. economic data releases

Bitcoin (BTC) dropped over 10% in the week leading up to Sept. 1, reversing its previous gains as the U.S. dollar's decline stalled, according to CoinDesk. This week’s U.S. economic data, starting with the ISM manufacturing PMI, will likely influence the dollar's direction and impact risk assets like cryptocurrencies. Analysts highlight that weaker economic indicators could strengthen the case for Federal Reserve rate cuts, potentially boosting Bitcoin. However, traders should be cautious of a "growth scare" if the data disappoints, as technical indicators suggest Bitcoin's bearish momentum may persist, with potential further declines toward $56,000.