The cryptocurrency market is awaiting a series of US economic data this week. These events have the potential to influence trader and investor sentiment, thereby adjusting trading strategies, with the potential for sharp volatility to emerge.
While traders are framing the potential for volatility, Bitcoin (BTC) remains above the psychological $90K level for now.
Initial Application for Unemployment Benefits
The US Department of Labor releases weekly data on unemployment claims, tracking individuals who apply for benefits. This week’s report, scheduled for release on Thursday, November 21, estimates that the total number of applications ending the week of November 16 is 217K. This was below expectations of 223K and marked a decline from last week’s unadjusted figure of 221K.
“Unemployment Claims (LEADING INDICATOR) continue to indicate that the labor market is strong,” comment from Richard Bernstein Advisors, which manages $15.6 billion in assets.
The latest data on unemployment claims show demand for labor is holding steady, even despite recent disruptions from hurricanes and strikes. If this trend holds, it could signal an easing of economic challenges and a strengthening labor market. This could boost consumer spending and confidence, benefiting financial markets.
When the number of claims declines, this indicates that more people have jobs or are able to find jobs. The result is higher disposable income and increased investment in assets like Bitcoin.
S&P Global US Manufacturing PMI Index
S&P Global US Manufacturing PMI for November is scheduled for release on Friday. This is an important economic indicator that measures the performance and health of the US manufacturing industry. With a previous reading of 48.5 and a forecast of 48.8, this index is among the macroeconomic indicators to pay attention to this week.
A higher PMI reading typically indicates expansion in the manufacturing industry, leading to strong economic growth and increased manufacturing activity. This could boost investor confidence in the overall economy. This positive sentiment could spread to the cryptocurrency market as investors look for more profitable investment opportunities like Bitcoin.
Similarly, PMI data can influence market sentiment and investors’ risk appetite. Positive PMI figures could lead to a more optimistic investment environment, which could benefit risky assets like cryptocurrencies.
S&P Global Services PMI Index
Another US economic data is S&P Global’s Services PMI, scheduled for release on Friday. The index measures the performance of the US service industry and provides insights into economic activity and business sentiment in service industries such as hospitality, finance, healthcare and technology.
Following the previous reading of 54.1, changes in the Services PMI could also affect Bitcoin and the broader cryptocurrency market. A higher Services PMI reading typically signals growth in the services industry, which is a key driver of economic activity. This could translate into positive sentiment in financial markets, which could benefit cryptocurrencies like Bitcoin as investors look for alternative assets with growth potential.
A strong Services PMI could also boost optimism about the business environment, leading investors to take more risks, including investing in cryptocurrencies.
“The first signs of economic trends in major economies around the world after the US Presidential Election will be awaited from the flash PMI surveys in November, along with US consumer confidence,” PMI insights account note.
Nvidia Enterprise Profit
Nvidia (NVDA), the leading GPU company, is expected to announce third-quarter earnings on Wednesday, November 20. The report often highlights GPU demand for gaming, AI, and cryptocurrency mining. Analysts expect revenue to rise 84% to $33.28 billion, driven largely by demand for AI infrastructure. Net earnings per share are expected to increase from $0.37 to $0.70.
Strong GPU sales for AI could boost investor confidence in AI-oriented sectors, including AI-focused cryptocurrencies. In the past, Nvidia’s performance has influenced the prices of AI-related tokens, with the potential for upward momentum if this week’s profits point to continued growth in AI and cryptocurrency applications.
Sentiment surrounding AI stocks ahead of Nvidia’s third-quarter earnings release is expected to weigh on AI-focused cryptocurrencies such as Render (RENDER), Worldcoin (WLD), Near Protocol (NEAR) and Bittensor ( I). Additionally, the DePin Aethir (ATH) project, known for its GPU rendering capabilities and often referred to as the “Nvidia of crypto,” could also see an impact from its earnings report.
Notably, Nvidia’s results will be announced immediately after the US Supreme Court announced plans to issue a narrow ruling in a shareholder lawsuit against the company. As previously reported by TinTucBitcoin, the lawsuit accuses Nvidia of misleading investors about its reliance on cryptocurrency mining revenue, which could add volatility to both Nvidia stock and the sectors. related cryptocurrency.
