Over the weekend, cryptocurrency markets maintained their gains after a rise triggered by the Federal Reserve’s meeting last Friday.
During the Jackson Hole event, Fed Chair Jerome Powell expressed that a change in monetary policy is necessary, stating, “the time has come for policy to adjust.” He also noted that the “timing and pace of rate reductions will depend on incoming data.”
This week promises significant inflation data which could introduce more volatility for higher-risk investments like cryptocurrencies.
“With Nvidia’s earnings report and PCE inflation scheduled for the same week, the trading environment looks promising,” said the Kobeissi Letter on August 25.
Economic Calendar for Aug. 26 to 30
On Tuesday, consumer confidence data will be published, illustrating how shoppers feel about the economy. However, the more substantial second-quarter GDP report will come out on Thursday, and is anticipated to show minimal change from the earlier estimate of a 2.8% annualized growth rate.
This Friday, the report for July’s Core Personal Consumption Expenditures (PCE) will be released. This data indicates the average monthly spending by consumers, excluding seasonal fluctuations in items such as food and energy, and it serves as a crucial measure of inflation monitored by the central bank.
Additionally, Friday will include the reporting of August’s Michigan Consumer Sentiment Index, which reflects consumer inflation expectations. This is derived from a monthly survey assessing consumer confidence levels and their perspectives on long-term inflation in the U.S.
Key Events This Week:
1. July Durable Goods Orders data – Monday
2. CB Consumer Confidence – Tuesday
3. Nvidia, $NVDA, Reports Earnings – Wednesday
4. Q2 2024 GDP data – Thursday
5. July Pending Home Sales data – Thursday
6. July PCE Inflation data – Friday
Prepare yourself for a…
— The Kobeissi Letter (@KobeissiLetter) August 25, 2024
This week’s spotlight is on Nvidia, which is set to announce its second-quarter earnings on Wednesday. Analysts believe this could be a critical point for U.S. stock markets, which have recently been propelled by technology shares like NVDA.
Crypto Market Insights
Following the Fed’s dovish stance, cryptocurrency markets surged by 6% since the speech. They remained steady over the weekend but saw a slight decline during Monday morning trading in Asia, bringing total market capitalization down to $2.34 trillion.
Bitcoin reached a three-week high of $65,120 on Monday morning but then retreated to around the $64,000 mark where it found support. Ethereum climbed to $2,788 but also fell back to approximately $2,740 as of this writing.
If the forthcoming inflation metrics are favorable, we might see sustained momentum in the markets this week.
Image Credit: Mahambah / shutterstock
