The week of macro data may become a turning point for the crypto market.

The cryptocurrency market is preparing for increased volatility. From August 25 to 29, key macroeconomic data #USA and corporate earnings reports will be published, which could set the tone for the movement of global markets and, consequently, crypto assets.

What events are in focus?

According to The Kobeissi Letter, this week investors' attention will be focused on several publications and reports:

  • New home sales data for July.

  • Nvidia's quarterly report.

  • Revised US GDP for the second quarter.

  • University of Michigan Consumer Sentiment Index.

  • Key PCE inflation indicator for July.

Each of these events has the potential to trigger movements in both traditional markets and cryptocurrencies.

The housing market - a signal for consumer activity.

The new home sales report is released today. Economists expect an increase in the figure from 627,000 to 632,000. Strong data will be interpreted as a sign of sustained consumer demand and economic growth.

For the crypto market, this could mean a liquidity outflow into traditional assets: investors are more likely to direct capital into stocks and bonds, which will put pressure on Bitcoin and Ethereum in the short term.

Nvidia and the AI factor.

Nvidia's earnings report, scheduled for Wednesday, could be the central event of the week.

  • Strong results are a driver for #AI tokens and the entire tech sector.

  • Weak indicators pose a risk of a decline in Nasdaq and increased sell-offs in the crypto market, especially among 'thematic' tokens related to AI.

The market perceives Nvidia as a barometer of demand for new technologies. Therefore, its report can directly influence the sentiments of crypto investors.

US GDP: confirmation of growth or risk of revision.

The US economy grew by 3% in the second quarter after a decline of 0.5% in the first. Revised data, which will be released on Thursday, may show growth of 3.1%.

If the figure is above expectations, the market will receive a signal about the stability of the economy. But at the same time, the argument for a 'more hawkish Fed' will strengthen, which will be negative for risky assets, including cryptocurrencies.

Consumer sentiment and PCE inflation.

Two reports will be published on Friday.

  • The University of Michigan's Consumer Sentiment Index - forecast unchanged, 58.6.

  • PCE inflation - a 0.2% increase is expected month-on-month and 2.6% year-on-year.

This indicator is key for the Fed. If inflation turns out to be higher than expected, the likelihood of a rate cut in September will decrease, which will negatively impact the cryptocurrency market.

What does this mean for investors?

The cryptocurrency market enters the week with a number of contradictions.

  • Strong macro data is a signal of the health of the economy, but negative for Bitcoin and Ethereum, as liquidity moves into stocks.

  • Weak statistics could lead to a rise in cryptocurrencies as risky assets.

At the same time, analysts warn: any deviation of actual figures from forecasts can trigger sharp movements. Against the backdrop of record levels in $ETH and high liquidation activity in $BTC , traders should consider the risk of sudden spikes in volatility.

What's next?

The results of this week will determine the short-term scenario for the crypto market. If inflation confirms a slowdown, and Nvidia's report is strong, altcoins and AI tokens may gain new momentum. Otherwise, the crypto market risks facing a correction before the Fed's September meeting.