Key US Economic Data That May Drive Crypto Volatility This Week

Crypto markets have several US economic data to look forward to this week. The events have the potential to influence traders’ and investors’ sentiment and, therefore, trading strategies, with volatility likely to follow.

As traders position themselves for possible volatility, Bitcoin (BTC) is holding above the $90,000 psychological level as of this writing.

Initial Jobless Claims

The US Department of Labor releases weekly jobless claims data, tracking individuals applying for unemployment benefits. This week’s report, set for Thursday, Nov. 21, follows initial claims for the week ending Nov. 16 totaling 217,000. This figure came in below the expected 223,000 and marked a decrease from the prior week’s unrevised count of 221,000.

“Jobless claims (LEADING Indicator) continue to suggest the labor market is very healthy,” said $15.6 billion AUM Richard Bernstein Advisors.

The latest jobless claims figures indicate steady demand for workers, even after recent disruptions from storms and strikes. If this downward trend persists, it may signal an easing of economic challenges and a strengthening labor market. This could boost consumer spending and confidence, potentially benefiting financial markets.

When jobless claims decrease, 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.

S&P Global US Manufacturing PMI

The S&P Global US Manufacturing Purchasing Managers’ Index (PMI) for November is due for release on Friday. It is a key economic indicator measuring the performance and health of the US manufacturing sector. With a previous reading of 48.5 and a 48.8 consensus forecast, this metric is among the US macroeconomic indicators on the watchlist this week.

A higher PMI reading typically indicates 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 may spill over into the cryptocurrency market as investors seek higher-yield investment opportunities like Bitcoin.

In the same way, the PMI data can influence market sentiment and risk appetite among investors. Positive PMI figures may lead to a more optimistic investment environment, potentially benefiting risk assets like crypto.

S&P Global Services PMI

Another US economic data point is the S&P Global Services Purchasing Managers’ Index (PMI), due for release on Friday. This indicator measures the performance of the US services sector and provides valuable insights into economic activity and business sentiment in service industries such as hospitality, finance, healthcare, and technology.

After a previous reading of 54.1, changes in the Services PMI can also have implications for Bitcoin and the broader cryptocurrency market. A higher Services PMI reading typically signals growth in the services sector, which is a significant driver of economic activity. This could translate to positive sentiment in financial markets, potentially benefiting cryptocurrencies like Bitcoin as investors seek alternative assets with growth potential.

A strong Services PMI may also boost optimism about the business environment, leading investors to take on more risk, including investment in cryptocurrencies.

“The first indications of economic trends in the world’s major economies after the US Presidential Election will be eagerly awaited from the November flash PMI surveys, with US consumer confidence also due,” the PMI insights account noted.

Nvidia Corporate Earnings

Nvidia (NVDA), the GPU leader, is set to announce its Q3 earnings on Wednesday, Nov. 20. The report often highlights GPU demand for gaming, AI, and crypto mining. Analysts are projecting an 84% surge in revenue to $33.28 billion, largely fueled by AI infrastructure demand. Net income per share is expected to climb from $0.37 to $0.70.

Strong GPU sales for AI could boost investor confidence in AI-driven sectors, including AI-focused cryptocurrencies. Historically, Nvidia’s performance has influenced the prices of AI-related tokens, with potential bullish momentum if this week’s earnings point to continued growth in AI and crypto applications.

The sentiment surrounding AI stocks ahead of Nvidia’s Q3 earnings release is likely to have an impact on AI-focused cryptocurrencies such as Render (RENDER), Worldcoin (WLD), Near Protocol (NEAR), and Bittensor (TAO). Additionally, DePin project Aethir (ATH), known for its GPU rendering capabilities and often dubbed the “Nvidia of crypto,” may also see effects from the earnings report.

Notably, Nvidia’s results will come shortly after the US Supreme Court signaled plans for a narrow ruling in a shareholder lawsuit against the company. As previously reported by BeInCrypto, the lawsuit accuses Nvidia of misleading investors about its dependence on crypto mining revenue, which could add further volatility to both Nvidia’s stock and related crypto sectors.