Key US economic data that could drive crypto volatility this week

Crypto markets have a lot of US economic data to look forward to this week. Events have the potential to influence traders' and investors' sentiments and business strategies, which are likely to follow.

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

Initial unemployment claims

The United States Department of Labor tracks individuals applying for unemployment benefits and issues weekly jobless claims. This week's report, scheduled for Thursday, November 21, followed initial claims for the week ending November 16, totaling 217,000. The figure came in below expectations of 223,000 and down from last week's unchanged figure of 221,000.

“Jobless claims continue to be the LEADING indicator that the labor market is very healthy,” said Richard Bernstein Advisors of $15.6 billion AUM.

The latest jobless claims figures show steady demand for workers, after recent disruptions from hurricanes and strikes. If this downward trend continues, it may indicate an easing of economic challenges and a strengthening of the labor market. This boosts consumer spending and confidence, which can benefit financial markets.

When unemployment claims fall, it suggests that more people will be employed and 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 that measures the performance and health of the US manufacturing sector. With a previous reading of 48.5 and a consensus forecast of 48.8, this gauge is among the top US macroeconomic indicators on the watch list this week.

A higher PMI reading indicates expansion in the manufacturing industry, thus stronger economic growth and increased manufacturing activity. This could boost investors' confidence in the overall economy. This positive sentiment could feed into the cryptocurrency market as investors look for high yield investment opportunities like Bitcoin.

Similarly, PMI data can affect market sentiment and risk appetite among investors. Positive PMI figures could lead to a more optimistic investment environment, which could benefit risk assets like crypto.

S&P Global Services PMI

Another US economic data point is the S&P Global Services Purchasing Managers' Index (PMI), which will be released on Friday. This indicator measures the performance of the US service sector and provides important insights into economic activity and business sentiment in service industries such as hospitality, finance, healthcare and technology.

After the previous reading of 54.1, changes in the services PMI could have implications for Bitcoin and the broader cryptocurrency market. A higher service PMI reading is particularly indicative of growth in the services sector, which is a significant 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, making investors more risk-averse, including investing in cryptocurrencies.

“The first economic trends in the world's major economies after the US presidential election are eagerly awaited from November's flash PMI surveys, as is US consumer confidence,” PMI Insights reported.

Nvidia corporate earnings

GPU leader Nvidia (NVDA) is set to report its Q3 earnings on Wednesday, November 20th. The report often highlights GPU demand for gaming, AI and crypto mining. Analysts are projecting an 84% increase in revenue 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-driven sectors, including AI-focused cryptocurrencies. Historically, Nvidia's performance has weighed on the value of AI-related tokens, with this week's earnings a sign of continued growth in AI and crypto applications.

Sentiment surrounding AI stocks ahead of Nvidia's Q3 earnings release may affect AI-focused cryptocurrencies such as Render (RENDER), Worldcoin (WLD), Near Protocol (NEAR), and Bittensor (TAO). Additionally, DePin's project Aethir ( ATH ), known for its GPU rendering capabilities and often dubbed the “Nvidia of crypto,” may see results from its earnings report.

Notably, Nvidia's results come shortly after the U.S. Supreme Court announced plans to rule narrowly against the company in a shareholder lawsuit. As previously reported by BeenCrypto, the lawsuit accuses Nvidia of misleading investors about its reliance on crypto mining revenue, which could add more volatility to both Nvidia stock and related crypto sectors.