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What Will Happen this Week in the Market? These Economic Events Could Affect the Price Your Cryptos

TL;DR

• The Dow Jones, S&P 500, and Nasdaq closed at record highs, while the crypto market fell more than 3% and Bitcoin dropped to $112,800.
• Powell will speak following the rate cut to 4%–4.25%, defended as a risk management measure against tariffs and inflationary pressures.
• Housing, durable goods, GDP, and PCE data will be released, setting the tone for the economy in a cooling labor market.

U.S. financial markets begin the week focused on a series of reports that will shape the trajectory of stocks and cryptocurrencies as 2025 comes to an end.

Last week, the Dow Jones, S&P 500, and Nasdaq each closed at record levels after gains between 1% and 2%. At the same time, the crypto market suffered a correction of more than 3%, cutting its market capitalization to $3.89 trillion. Bitcoin slipped to $112,800 after reaching an intraday high of $115,834, reflecting a broad pullback across major digital assets.

Bitcoin And The Crypto Market Face A Sharp Setback

On Tuesday, Federal Reserve Chair Jerome Powell will speak in Rhode Island following the cut in the benchmark rate to a range of 4% to 4.25%. It was the first reduction since Donald Trump returned to the presidency in January. Powell described the decision as a risk management move to counter inflationary pressures. He warned that tariffs imposed by the administration could push consumer prices higher, while Trump argues that his goal is to lower costs without fueling inflation and continues to demand further cuts this year.

On Wednesday, August new home sales data will be released. In July, this market registered a 0.6% monthly drop to an annualized pace of 652,000 units, with declines in the Midwest and South, stability in the Northeast, and an uptick in the West. Home prices rose 1.9% year-over-year in June, the slowest increase since mid-2023.

Rate Cuts And Economic Data

On Thursday, durable goods orders data will be published. In July, orders fell 2.8% to $302.8 billion after a prior 9.4% plunge in June. That same day, the Commerce Department will release its revised estimate for second-quarter GDP, which showed annualized growth of 3.3% compared to the 0.5% contraction in the first quarter. Import dynamics, driven by tariffs early in the year, helped improve the figure.

Also on Thursday, existing home sales for July will be reported. Sales rose 2% to 4.01 million units, while the median price climbed to $422,400. Thirty-year mortgage rates stand at 6.58%, still above pre-pandemic levels. The week will conclude on Friday with the PCE inflation report, a key indicator tracked by the Fed. Powell has signaled that goods prices will continue to drive inflation higher into 2026, against a backdrop of slowing job creation and mounting signs of a cooling labor market