Key US Economic Data That May Drive Crypto Volatility This Week
Cryptocurrency markets have several U.S. economic data to look forward to this week. These events have the potential to affect trader and investor sentiment and thus trading strategies, volatility May follow.
Bitcoin (BTC) remains above the psychological $90,000 level at the time of writing as traders brace for possible volatility.
Number of people filing for unemployment benefits for the first time
The U.S. Department of Labor releases weekly unemployment claims data, tracking individuals filing for unemployment benefits. This week’s report is scheduled for release on Thursday, November 21, with initial jobless claims totaling 217,000 for the week ended November 16. The number was below expectations of 223,000 and was down from the previous week’s unrevised 221,000.
“Jobless claims (a leading indicator) continues to indicate a very healthy labor market,” explain Richard Bernstein Advisors has $15.6 billion in assets under management.
The latest unemployment claims data suggests demand for workers remains steady even after disruptions caused by recent storms and strikes. If this downward trend continues, it could signal easing economic challenges and a strengthening labor market. This could boost consumer spending and confidence, potentially benefiting financial markets.
When jobless claims fall, it indicates that more people are employed or able to find work. The result is increased disposable income and increased investment in assets such as Bitcoin.
S&P Global U.S. Manufacturing PMI
The S&P Global U.S. Manufacturing Purchasing Managers Index (PMI) for November will be released on Friday. It is a key economic indicator of the performance and health of the U.S. manufacturing industry. The indicator’s previous value was 48.5 and the consensus forecast was 48.8. It is one of the US macroeconomic indicators on the watch list this week.
Higher PMI readings typically indicate expansion in the manufacturing sector, thereby indicating strong economic growth and increased manufacturing activity. This could boost investor confidence in the overall economy. This positive sentiment may spread to the cryptocurrency market as investors seek higher-yielding investment opportunities such as Bitcoin.
Likewise, PMI data also affects market sentiment and investors’ risk appetite. Positive PMI data may lead to a more optimistic investment environment, which may be beneficial to risky assets such as cryptocurrencies.
S&P Global Services PMI
Another U.S. economic data point is the S&P Global Services Purchasing Managers Index (PMI), due out on Friday. This indicator measures the performance of the U.S. services sector and provides valuable insights into economic activity and business sentiment in service industries such as hospitality, finance, healthcare, and technology.
Changes in the services PMI could also have an impact on Bitcoin and the broader cryptocurrency market, following a previous reading of 54.1. Higher services PMI readings typically signal growth in the services sector, an important driver of economic activity. This could translate into positive sentiment in financial markets, with cryptocurrencies such as Bitcoin likely to benefit as investors seek alternative assets with growth potential.
Strong services PMI could also boost optimism about business conditions, leading investors to take on more risk, including investing in cryptocurrencies.
“Early signs of economic trends in major global economies US presidential election PMI Insight Accounts will eagerly await November’s preliminary PMI survey, and US consumer confidence will follow suit. ” famous.
NVIDIA’s earnings
GPU leader Nvidia (NVDA) will report third-quarter earnings on Wednesday, November 20. The report often emphasizes Game requirements for GPUartificial intelligence and cryptocurrency mining. Analysts expect revenue to rise 84% to $33.28 billion, driven primarily by demand for artificial intelligence infrastructure. Net income per share is expected to climb to $0.70 from $0.37.
Strong sales of AI GPUs could boost investor confidence in AI-driven industries, including AI-focused cryptocurrencies. Historically, Nvidia’s performance has impacted the price of AI-related tokens, and if this week’s earnings indicate continued growth in AI and crypto applications, there could be bullish momentum.
Ahead of Nvidia’s third-quarter earnings release, sentiment surrounding AI stocks could have an impact on AI-focused cryptocurrencies like Render (make it), World Coin (WLD), near agreement (NEAR) and Bittensor (TAO). also, DePin Project Aethir ATH, known for its GPU rendering capabilities and often referred to as the “Nvidia of cryptocurrencies,” may also be affected by the earnings report.
It’s worth noting that Nvidia’s results will be in U.S. Supreme Court says it plans to rule narrowly in a shareholder lawsuit against the company. As BeInCrypto previously reported, the lawsuit accuses Nvidia of misleading investors about its reliance on cryptocurrency mining revenue, which could further increase volatility in Nvidia stock and the related cryptocurrency industry.
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