Bitcoin Volatility Incoming? 3 Things That Could Influence Crypto Markets in the Week Ahead

Crypto markets are currently navigating levels around an all-time high of $4 trillion, with altcoins exhibiting promising potential.

Recent economic data from the United States indicates continued economic health and improvement, evidenced by a rebound in retail sales and a decrease in jobless claims. Furthermore, CPI and PPI reports suggest that core price increases remain moderate.

The upcoming week features housing data and Purchasing Managers' Indexes (PMIs), which typically have limited influence on crypto market movements. The weekend has been relatively quiet regarding tariff-related news.

Economic Events: July 21 to 25

• Wednesday: June's existing home sales reports will be released, offering insights into the housing market and overall economy, although they are unlikely to significantly impact higher-risk assets.
• Thursday: July's Global Manufacturing PMI and Services PMI are scheduled. These reports serve as leading economic indicators, providing timely perspectives on evolving economic conditions.
• Friday: Reports on June's Durable Goods Orders will be published. These orders measure the value of orders received by manufacturers for durable goods, helping to assess production activity and demand for major purchases.

Key Events This Week:

1. Fed Chair Powell Speaks – Tuesday
2. June Existing Home Sales data – Wednesday
3. July S&P Global Manufacturing PMI data – Thursday
4. June New Home Sales data – Thursday
5. June Durable Goods Orders data – Friday
6. ~15% of S&P 500 companies report…

— The Kobeissi Letter (@KobeissiLetter) July 20, 2025

Futures markets indicate a high probability (95.3%) that the Federal Reserve will maintain current interest rates at its July 30 meeting.

The earnings season begins with the "Magnificent Seven" tech giants reporting second-quarter earnings this week, including Google parent Alphabet and Tesla.

According to Chuck Carlson, chief executive officer at Horizon Investment Services, this earnings season "seems to be especially important because of the rebound that the market has had," adding, "I would think that that has built in a fair amount of optimism in terms of earnings."

Crypto Market Outlook

The total market capitalization has slightly decreased from its weekend peak above $4 trillion. Despite this, the crypto market has experienced a bullish year, with gains of 17.6% since the beginning of the year.

Bitcoin briefly dipped below $117,000 during late trading on Sunday but recovered to above $118,000 during the Asian session on Monday morning. The asset has been consolidating around this level after falling below $120,000 late last week.

Ethereum continues to outperform, surging to over $3,800 on Sunday, reaching a seven-month high. ETH has risen significantly, gaining 46% in the past two weeks, but has since cooled to $3,744 at the time of writing.

Other assets showing strong performance this Monday morning include Dogecoin, with a 7.4% increase to $0.27, Cardano, reaching $0.87 after a 4% gain, Stellar, spiking to $0.48, and Chainlink, adding 5% to approach $20.