Cryptocurrency markets held onto their gains over the weekend following a rally in the wake of last Friday’s Federal Reserve meeting.
Speech In Jackson Hole, Federal Reserve Chairman Jerome Powell Affirmed expectations of an imminent shift in monetary policy, saying that “the time has come to tighten policy,” before adding that “the timing and pace of rate cuts will depend on incoming 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 in the same week create excellent trading conditions,” Kobeissi Letter commented on August 25.
Economic Calendar August 26-30
Consumer confidence data will be released on Tuesday, giving a sense of the overall mood of shoppers in the market. However, the broader and more impactful second-quarter GDP report will be released on Thursday. The second update is expected to show little or no change from the initial estimate of a 2.8% annualized growth rate.
The core Personal Consumption Expenditures (PCE) report for July will be released on Friday. These data reflect the average amount of money consumers spend on a monthly basis, excluding seasonally volatile items such as food and energy, and are used by the central bank as a primary gauge of inflation.
Also due on Friday is the release of consumer inflation expectations from the Michigan Consumer Confidence Index for August. The data provides the results of a monthly survey of consumer confidence levels and their views on long-term inflation in the U.S.
Key events of this week:
1. Durable Goods Orders Data for July – Monday
2. Central Bank Consumer Confidence – Tuesday
3. Nvidia, $NVDAReports earnings – Wednesday
4. GDP data for the second quarter of 2024 – Thursday
5. July Pending Home Sales Data: Thursday
6. PCE inflation data for July – Friday
Buckle up for a…
— Kobeissi’s letter (@KobeissiLetter) August 25, 2024
The most anticipated earnings report this week is from chip giant Nvidia, which will release its second-quarter revenue figures on Wednesday. Analysts have said this could be a pivotal moment for US stock markets, which have been driven by tech stocks such as NVDA.
Cryptocurrency Market Outlook
Cryptocurrency markets were boosted by the Federal Reserve’s dovish shift, gaining 6% since the speech. They held steady over the weekend but fell slightly during Monday morning’s Asian trading session, with total capitalization falling to $2.34 trillion.
Bitcoin soared to its highest level in three weeks at $65,120 on Monday morning but retreated shortly after, falling back to the $64,000 level, where support held. Ethereum It reached $2,788 but also retreated to around $2,740 at the time of writing.
Market momentum could continue this week if inflation indicators are positive.
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