Highlights
The crypto market have begun to recover after its recent drop. The positive change comes before an important week for the U.S. economy. Traders are preparing for reports on inflation and jobs that might influence the Federal Reserve’s next decisions.
The week opened with a positive change across the crypto market. This was led by the push back above $85,000 by Bitcoin after its recent crash to as low as $80,000. BTC climbed almost 2% in the past 24 hours while trading volumes jumped nearly 50%.
Also, the market as a whole rose around 1.5%. Experts attributed part of Bitcoin’s weekend surge to recovering institutional participation. U.S. spot ETFs saw an inflow of about $238 million as it looks to build back confidence in the market. However, weekend activity tends to drop by up to 25%, and that often exaggerates price movements.
Another factor that gave the markets a boost is the Fed rate cut. Investor sentiment improved sharply after markets priced in a 67% probability of a December rate cut.
In addition, BlackRock’s filing for a staked Ethereum ETF also fueled optimism for the crypto market. The proposed product promises an estimated 3–4% yield.
The list of economic events that could affect financial markets this week was shared in an X post by Kobeissi Letter. However, investors are mainly focused on three key reports. This is the Producer Price Index, weekly jobless claims, and the Federal Reserve’s favored inflation gauge.
The PPI is scheduled to be released on Tuesday, November 25. The wholesale inflation data will help determine whether price pressures are growing. A hotter PPI reading could stop further rate-cut expectations. A softer number could lead to more policy easing early next year.
Also, the Jobless claims are scheduled for Wednesday, November 26. Generally speaking, higher-than-expected unemployment claims support the argument of sooner rate cuts. Meanwhile, the U.S. job reports in the previous week came in higher than projected, and Bitcoin surged accordingly.
This week, the core crypto market determinant will be the release of the PCE Inflation reports. The PCE depicts real-world consumer behavior. This is because any upside of this may produce immediate volatility across Bitcoin and major altcoins.
Analyst Oleg Kalmanovich thinks that U.S. retail sales data and the PCE report will determine if the market continues recovering. However, he believes that disappointing economic numbers could boost the case for a rate cut on December 10.
If data comes in stronger than expected, however, this pressure on the market could continue into early 2026.
CryptoQuant also notes that short-term holders have largely capitulated. The conditions means the token could be set for a near-term bounce. However, the firm warns that losing the $80,000 support level could cause a more prolonged correction.
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