4 Things That Could Ignite Crypto Markets Next Week

Crypto markets have held on to gains over the weekend after a rally following the Federal Reserve meeting last Friday.

Speaking in Jackson Hole, Fed Chairman Jerome Powell affirmed expectations of an imminent pivot in monetary policy saying “the time has come for policy to adjust,” before adding that “the The timing and pace of rate cuts will depend on incoming data.”

Key inflation data will be released this week which could lead to more volatility for riskier assets like crypto.

“Nvidia earnings and PCE inflation in the same week make for excellent trading conditions,” commented Kobeissi Letter on August 25.

Economic calendar from August 26 to 30

Data on consumer confidence levels will be released on Tuesday, indicating overall market sentiment among shoppers. However, the biggest and most impactful Q2 GDP report is due on Thursday. The second update is expected to show little or no change from the initial estimate of an annualized growth rate of 2.8%.

The core personal consumption expenditure (PCE) report for July will be released on Friday. This data reflects the average amount of money consumers spend each month, excluding seasonally volatile products such as food and energy, and is used by the central bank as a leading indicator of inflation.

Consumer inflation expectations from the Michigan Consumer Sentiment Index for August will also be reported on Friday. The data provides the results of a monthly survey of consumer confidence levels and their views on long-term inflation in the US.

Key events this week:

1. Durable goods order data for July – Monday

2. CB Consumer Confidence – Tuesday

3. Nvidia, $NVDAEarnings Reports – Wednesday

4. GDP data for Q2 2024 – Thursday

5. Pending home sales data for July – Thursday

6. July PCE inflation data – Friday

Sign up for a…

— Kobeissi Letter (@KobeissiLetter) August 25, 2024

The expected earnings report this week is from chip giant Nvidia, which will release its second-quarter earnings numbers on Wednesday. Analysts have said this could be a key moment for US stock markets, which have been buoyed by tech stocks such as NVDA.

Crypto market outlook

Crypto markets were boosted by the Fed’s dovish pivot, gaining 6% since the speech. They were steady over the weekend, but fell slightly during Monday morning’s Asian trading session, with total market capitalization falling to $2.34 trillion.

Bitcoin rose to its highest level in three weeks at $65,120 on Monday morning, but retreated shortly after, returning to the $64,000 level where support remained. Ethereum hit $2,788, but also retreated to $2,740 at the time of writing.

Market momentum could continue this week if inflation indicators are positive.

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