4 things that could spark the cryptocurrency market next week

Cryptocurrency markets continued to rise over the weekend, following a surge following last Friday's Federal Reserve meeting.

Speaking in Jackson Hole, Fed Chairman Jerome Powell confirmed that a shift in monetary policy was imminent, saying “it is time to adjust policy,” adding that “the timing and pace of rate cuts will depend on upcoming data.”

Key inflation data will be released this week, which could lead to increased volatility for riskier assets such as cryptocurrencies.

“NVIDIA earnings and PCE inflation occurring in the same week have created a favorable trading environment,” commented Kobeissi Letter on August 25.

Economic Calendar August 26-30

Consumer confidence data is due to be released on Tuesday, showing overall market sentiment among shoppers, but the larger and more influential second-quarter GDP report is due to be released on Thursday, which is expected to show little change from earlier estimates of 2.8% annualized growth.

The core personal consumption expenditures (PCE) report for July is due to be released on Friday. The data reflects average monthly spending by consumers excluding seasonally sensitive products such as food and energy and is used by the central bank as a key indicator of inflation.

Friday will also see the release of the Michigan Consumer Confidence Index Consumer Inflation Expectations for August, a monthly survey of U.S. consumer confidence levels and their views on long-term inflation.

Key events this week:

1. July Durable Goods Orders Data – Monday

2. CB Consumer Confidence Index – Tuesday

3. NVIDIA, $NVDAEarnings Report – Wednesday

4. Q2 2024 GDP Data – Thursday

5. July Pending Home Sales Data – Thursday

6. July PCE Inflation Data – Friday

Fasten your seat belt…

— Kobeissi Letter (@KobeissiLetter) August 25, 2024

The hottest earnings report this week is from semiconductor giant Nvidia, which is set to report second-quarter earnings on Wednesday. Analysts say it could be a pivotal moment for the U.S. stock market, which has been driven by tech stocks such as Nvidia.

Cryptocurrency Market Outlook

Crypto markets rallied on the Fed's dovish shift, up 6% since the speech, and were stable over the weekend before slipping slightly during Monday morning's Asian trading session, dropping their market capitalization to $2.34 trillion.

Bitcoin surged to a three-week high of $65,120 on Monday morning but quickly retreated and fell to support at the $64,000 level. Ethereum reached $2,788 but has since fallen to around $2,740 at the time of writing.

Positive inflation data could help the market continue its momentum this week.