Crypto Market Eyes Key US Economic Events to be Released This Week

A busy week lies ahead for the crypto market amid the ongoing US government shutdown, which is now in its third week. Despite the data drought, key US economic data are set to be released this week, sparking widespread enthusiasm and speculation.

What to Expect this Week

The crypto market is poised to see increased volatility this week as key US economic events are slated to occur. Top of the agenda is the OPEC Monthly Report, followed by crucial statements from Fed Chair Jerome Powell and a slew of economic indicators, including the NY Fed Manufacturing Index, Philly Fed Manufacturing Index, and NAHB Housing Market Index.

About 10% of S&P 500 companies are about to announce earnings, and investors will follow those closely for insights into the global economy and potentially a shift in the crypto space. The Kobeissi Letter provided some insight into these developments in an X post.

Crypto Market to Respond to US Economic Events

The OPEC Monthly Report is viewed as a major signal event for energy markets, reflecting the status of the global oil supply-demand equation. It provides data on oil production, oil consumption, and inventory levels, all of which affect the price of oil at the local distribution level. The crypto prices typically move with the broader trends, which would be the case for the OPEC monthly report.

The speech by Fed Chair Jerome Powell on Tuesday is a key event the cryptocurrency space is watching for.. The community is awaiting his words, anticipating hints at the central bank’s potential decision on the interest rate cut. Powell's statements can influence interest rates, inflation expectations, and overall sentiment, all of which can impact the crypto sector.

Another important US economic event is the NY Fed Manufacturing Index, which is a key indicator of the health of the manufacturing sector in the New York region. It provides insights into employment, new orders, and overall business conditions.

The Philly Fed Manufacturing Index is another important indicator of manufacturing activity, this time in the Philadelphia region. The report reflects the overall health of the sector, which includes employment, shipments, and new orders. A solid number can represent a growing economy, while a fall would indicate a slowing economy. Investors watch these indices for any economic trends that could have repercussions on the cryptocurrency space.

The next is the NAHB Housing Market Index, which is scheduled to be released on Thursday, containing insight into homebuilder confidence in the US housing industry. This provides insights into current sales conditions, sales expectations, and buyer traffic. In addition, about 10% of S&P 500 companies are set to report their earnings this week, providing insights into the condition of the US corporate sector. Strong earnings reports can boost investor confidence, while weak reports can lead to market volatility.