This week, Bitcoin (CRYPTO:BTC) investors are closely monitoring key economic indicators and Federal Reserve Chair Jerome Powell's testimony, which could sway market sentiment.

Economic highlights include the Consumer Price Index (CPI) report on Thursday, pivotal for gauging inflation trends crucial to Fed policy decisions.

Powell's addresses to Senate and House committees will focus on monetary policy amid signs of a weakening job market and easing wage pressures, potentially hinting at future rate cuts.

Additionally, Friday brings the Producer Price Index (PPI) report, detailing production costs that influence consumer goods prices and inflation outlooks.

Market reactions have been mixed, with Bitcoin hovering near $57,000 after recent declines, reflecting ongoing bearish sentiment exacerbated by regulatory concerns and market volatility.

As Q2 earnings reports from major banks unfold, they will provide further insights into economic health and potential impacts on cryptocurrency markets.