US PCE, FOMC, Crypto Expiry:What’s Driving the Crypto Market

PCE, FOMC, and Crypto Expiry: How Will They Crypto Drive Market Shifts

The crypto market is gearing up for a busy week, with key events like US PCE inflation data, FOMC minutes, Q3 GDP figures, and major crypto expiries on the horizon. All eyes are on how these factors might influence the ongoing market rally.

Key Economic Events Set to Shape Markets This Week

This week, all eyes are on key economic events that could steer markets, including US PCE inflation data and the Federal Reserve's November FOMC minutes.

The action begins Tuesday, November 26, with Consumer Confidence data, followed by the FOMC minutes, offering fresh clues on the Fed's monetary policy direction amid reports of a softer stance on the 2% inflation target.

With Donald Trump’s election win and Elon Musk advocating for reduced Federal spending, investors are closely watching for signals that could reshape market sentiment.

US GDP Focus: The Q3 US GDP first revision, due on Wednesday, November 27, will be a key indicator of economic health. Its outcome could influence both traditional financial markets and the crypto space.

1. PCE Inflation (October): 

Monthly: Expected to stay at 0.2%.

Year-on-Year: Anticipated to increase to 2.3% from 2.1% in September.

2. Core PCE Inflation (Excluding food & energy):

Monthly: Likely to remain at 0.3%.

Year-on-Year: Expected to edge up to 2.8%, from 2.7% last month.

Crypto Expiry: A Potential Speed Bump in the Rally?

Bitcoin and other major altcoins have been on a strong upward trend, fueled by market optimism following Donald Trump’s election win. But the upcoming crypto expiry, set for November 29, could shake things up. A massive $9.13 billion in Bitcoin options and $1.24 billion in Ethereum options are set to expire, with a combined market value of over $10 billion. This could spark significant volatility, with Bitcoin's "max pain" price sitting at $77,000 and Ethereum's at $2,800. Experts like Peter Brandt warn of a possible selloff, though they're still bullish on crypto's long-term future.

Traders will be closely watching macroeconomic factors like the US PCE inflation data and the FOMC minutes, all of which could influence market sentiment as the expiry date approaches.