Crypto Market To See Volatility This Week, Know Why

The crypto market is poised for a major transformation this week as a slew of key macroeconomic events are set to be released. From the July New Home Sales data to Nvidia's earnings report and crucial inflation metrics, the stage is set for a volatile week that could shape the trajectory of global economy.

Crypto Market to Witness Key Events This Week

According to The Kobeissi Letter , a wave of significant volatility is expected to hit the crypto market this week, fueled by key upcoming events. From August 25 to 29, several major economic data releases and earnings reports are set to shape the global economy.

Notably, the events include July New Home Sales, Nvidia Reports Earnings, US Q2 2025 GDP, MI Consumer Sentiment, and July PCE Inflation reports.

The new home sales data is scheduled to be released today. Poised to impact the crypto market, economists believe that the rate will increase from 627,000 to 632,000. If the data shows a stronger-than-expected surge in sales, it may signal a boost in consumer spending and economic growth. This could lead to increased investor confidence in traditional assets, potentially drawing funds away from cryptocurrencies like Bitcoin. As a result, a robust new home sales report could put downward pressure on cryptocurrency prices, at least in the short term.

Nvidia’s Earnings Report

The report, set to release on Wednesday, may become a major catalyst for the potential trajectory of the crypto market . Strong earnings could particularly impact AI tokens, driving their imminent surge. Conversely, disappointing earnings could weigh on the Nasdaq and cryptocurrencies, potentially sending prices down.

US GDP

The US economy saw a robust growth of 3 percent in Q2, rebounding sharply from a 0.5 percent contraction in the previous quarter. According to the Economic Calendar, the first revision of the GDP reading is predicted to surge to 3.1% from the previous 3.0%.

Consumer Sentiment and PCE Inflation

On Friday, two major reports are scheduled to be published- MI Consumer Sentiment and PCE Inflation. While the PCE readings will track the changes in inflation based on customer spending, the sentiment analysis will measure community attitudes and optimism about the economy.

The July PCE report is expected to show an increase of 0.2%, less than the previous 0.3%. On a year-over-year basis, the PCE index is forecasted to rise by 2.6%, consistent with previous readings. The consumer sentiment is also forecasted to remain at 58.6, with no changes from the last one. The combination of these reports could lead to increased crypto market volatility, especially if actual figures deviate from forecasts.