Crypto markets have held on to gains over the weekend following an upsurge in the wake of the Federal Reserve meeting last Friday.

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

This week will see the release of key inflation data which could result in more volatility for higher risk assets such as crypto.

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

Economic Calendar Aug. 26 to 30

Data on consumer confidence levels will be released on Tuesday, signaling the overall market sentiment of shoppers. However, the larger and more impactful second-quarter GDP report is due on Thursday.  The second update is expected to show little or no change from the initial estimate of a 2.8% annualized growth rate.

July’s Core Personal Consumption Expenditures (PCE) report is due on Friday. This data reflects the average amount of money consumers spend monthly, excluding seasonally volatile products such as food and energy, and is used by the central bank as a primary gauge of inflation.

Friday will also see August’s Michigan Consumer Sentiment Index consumer inflation expectations reporting. The data provides the results of a monthly survey of consumer confidence levels and their views of long-term inflation in the US.

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

Buckle up for a…

The Kobeissi Letter (@KobeissiLetter) August 25, 2024

The anticipated earnings report this week is 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.

Crypto Market Outlook

Crypto markets were boosted by the Fed’s dovish pivot, gaining 6% since the speech. They have remained stable over the weekend but dipped a little during the Monday morning Asian trading session, with total capitalization falling to $2.34 trillion.

Bitcoin spiked to its highest level for three weeks at $65,120 on Monday morning but retreated soon after, dropping back to the $64,000 level where support held. Ethereum hit $2,788 but also retreated back to around $2,740 at the time of writing.

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