Crypto markets have several US economic data to look forward to this week. These events have the potential to influence trader and investor sentiment and, therefore, trading strategies, with volatility likely to follow.
As traders position themselves for possible volatility, Bitcoin (BTC) remains above the psychological $90,000 level at the time of writing.
Initial Unemployment Claims
The U.S. Department of Labor releases weekly unemployment claims data, which tracks people applying for unemployment benefits. This week’s report, scheduled for Thursday, November 21, follows initial claims for the week ending November 16 totaling 217,000. This figure is lower than the 223,000 expected and marks a drop from the unrevised tally of 221,000 from the previous week.
“Unemployment claims (leading indicator) continue to suggest that the job market is very healthy,” said $15.6 billion-asset Richard Bernstein Advisors.
The latest jobless claims figures indicate continued demand for workers, even after recent disruptions from storms and strikes. If this downward trend persists, it could signal easing economic challenges and a strengthening labor market. This could boost spending and consumer confidence, which could benefit financial markets.
When unemployment claims fall, it suggests that more people are employed or able to find work. The result is higher disposable income and increased investment in assets like Bitcoin.
US S&P Global Manufacturing PMI
The S&P Global US Manufacturing Purchasing Managers’ Index (PMI) for November is due to be released on Friday. It is a key economic indicator measuring the performance and health of the U.S. manufacturing sector. With a previous reading of 48.5 and a consensus forecast of 48.8, this indicator is among the US macroeconomic indicators on the watch list this week.
A higher PMI generally indicates an expansion in the manufacturing industry, thus strong economic growth and increased manufacturing activity. This could boost investor confidence in the overall economy. This positive sentiment could spill over into the cryptocurrency market as investors seek higher-yielding investment opportunities like Bitcoin.
Similarly, PMI data can influence market sentiment and investors’ risk appetite. Positive PMI numbers can lead to a more optimistic investment environment, potentially benefiting risky assets like crypto.
S&P Global Services PMI
Another US economic data is the S&P Global Services Purchasing Managers’ Index (PMI), scheduled for release on Friday. This indicator measures the performance of the U.S. service sector and provides valuable insights into economic activity and business climate in service sectors such as hospitality, finance, healthcare, and technology.
Following a previous reading of 54.1, changes in the Services PMI may also have implications for Bitcoin and the broader cryptocurrency market. A higher services PMI generally signals growth in the services sector, which is an important driver of economic activity. This could result in positive sentiment in financial markets, potentially benefiting cryptocurrencies like Bitcoin, as investors look for alternative assets with growth potential.
A strong services PMI can also boost optimism about the business environment, prompting investors to take more risks, including investing in cryptocurrencies.
“Early indications of economic trends in the world’s major economies after the US presidential election will be eagerly awaited in November flash PMI surveys, along with US consumer confidence as well,” notes the PMI Insights report.
Nvidia company profits
Nvidia (NVDA), the GPU leader, is expected to announce its third quarter results on Wednesday, November 20. The report often highlights GPU demand for gaming, AI, and crypto mining. Analysts forecast an 84% increase in revenue, to $33.28 billion, largely fueled by demand for AI infrastructure. Net earnings per share are expected to increase from $0.37 to $0.70.
Strong sales of AI GPUs could boost investor confidence in AI-driven sectors, including AI-driven cryptocurrencies. Historically, Nvidia’s performance has influenced the prices of AI-related tokens, with potential bullish momentum if this week’s earnings indicate continued growth in AI and crypto applications.
Sentiment surrounding AI stocks ahead of Nvidia’s third-quarter earnings release is likely to impact AI-focused cryptocurrencies such as Render (RENDER), Worldcoin (WLD), Near Protocol ( NEAR) and Bittensor (TAO). Additionally, the DePin Aethir (ATH) project, known for its GPU rendering capabilities and often dubbed the “Nvidia of crypto,” could also see effects from the earnings report.
Notably, Nvidia’s results will come shortly after the U.S. Supreme Court announced plans to issue a narrow ruling in a shareholder lawsuit filed against the company. As BeInCrypto previously reported, the lawsuit accuses Nvidia of misleading investors about its reliance on crypto mining revenue, which could add even more volatility to Nvidia’s stock and crypto sectors associates.
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