Bitcoin BTC/USD is entering a pivotal week, as concerns over a potentially overheating U.S. economy continue to drag down the apex cryptocurrency.

What Happened: Following a stronger-than-expected non-farm payrolls report, which showed 256,000 jobs added against a forecast of 164,000, fears of accelerated inflation have been reignited, leading to a retreat in equity markets, according to QCP Capital.

The robust employment data has effectively nullified expectations of near-term interest rate cuts by the Federal Reserve.

Compounding these concerns are the prospects of potential Trump-era tariffs, which could further escalate inflationary pressures.

Bitcoin is trading around $91,100 in early morning U.S. hours, down 3.4% over the past 24 hours.

Ethereum ETH/USD has followed king crypto lower, trading around $3,080, 5.8% down.

Key economic data releases, including the Producer Price Index (PPI), Consumer Price Index (CPI) and Unemployment Claims are all scheduled for this week.

Any further signs of an overheating economy could further test the markets, posing a challenge to the narrative that crypto is a safe haven against inflation.

Also Read: Crypto’s Capitol Hill Breakthrough: Senate Subcommittee Signals Shifting Political Winds

Why It Matters: In addition to economic uncertainties, the crypto industry is also seeing significant political developments, President-elect Donald Trump is reportedly forming a cryptocurrency advisory council, comprised of around 24 CEOs and founders, including major figures from industry giants like MicroStrategy MSTR, Coinbase COIN and Circle USDC/USD, according to Bloomberg.

This council aims to provide guidance on digital asset policy and help draft legislation with Congress.

The advisors will also work with government agencies, with an aim to establish a strategic Bitcoin reserve.

Crypto.com CEO Kris Marszalek, as well as MicroStrategy executive chairman Michael Saylor, have visited Mar-a-Lago to discuss policies and potential roles within the incoming administration.

Coinbase CEO Brian Armstrong and Ripple XRP/USD CEO Brad Garlinghouse have also reportedly met with Trump recently to offer their support.

Circle CEO Jeremy Allaire recently stated that his firm donated 1 million USDC/USD to Trump’s inaugural committee.

The formation of this council, along with the significant involvement of industry leaders, signifies a potential shift toward a more crypto-friendly regulatory environment in the U.S, while simultaneously placing the spotlight on crypto’s relevance in times of economic uncertainty.

This week's developments could prove to be a major inflection point for digital assets.

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