Key Insights:
- U.S. PCE data and GDP release could shape market movements this week.
- Thinner liquidity and positive surprises may spark a year-end rally.
- Cooling inflation data could signal a more stable economic outlook for markets.
As the U.S. economy continues to show signs of stability, key economic data this week could influence market trends, including the cryptocurrency market. With holiday liquidity at its thinnest, positive surprises in these reports could trigger a late-year rally in various assets, including digital currencies.
Key U.S. Economic Data Expected This Week
This week, attention is focused on several major economic reports. On Monday, the U.S. will release the October Personal Consumption Expenditures (PCE) inflation data. This report is closely watched as it provides insights into inflation trends. If inflation shows signs of cooling, it could reduce pressure on interest rates, which is generally seen as a positive for markets.
🇺🇸 EYES ON THIS WEEK: U.S. ECONOMIC DATA COULD MOVE MARKETS
Monday: October PCE Inflation
Tuesday: U.S. Q3 2025 GDP, Consumer Confidence, New Home Sales
Wednesday: Durable Goods Orders
Thursday: U.S. markets closedThe bullish case:
• Cooling PCE = lower rate pressure… pic.twitter.com/0PsPPPGR6t— CryptosRus (@CryptosR_Us) December 22, 2025
On Tuesday, the U.S. will release its third-quarter 2025 Gross Domestic Product (GDP) data along with consumer confidence and new home sales. GDP data provides insight into the health of the overall economy. A solid GDP figure could support the narrative of a soft economic landing, suggesting that growth is steady and not overheating. The consumer confidence and home sales data will also offer clues about consumer sentiment, which could influence broader market trends.
Potential for a Year-End Rally
Given that the U.S. markets will be closed on Thursday for the holiday, thinner liquidity could amplify market movements. “Positive macroeconomic surprises in key data points could trigger a year-end rally,” said market analysts. The cryptocurrency market often reacts quickly to such developments, sometimes leading broader markets in price movements. A favorable GDP report or lower inflation data could encourage a more optimistic outlook for investors, particularly in risk-on assets like cryptocurrency.
Analysts suggest that the combination of a stable economy, stable consumer confidence, and lower inflation could fuel a risk-on sentiment, potentially lifting the cryptocurrency market ahead of the new year.
What to Expect from U.S. Data Reports
The PCE inflation data, in particular, will be watched closely. A lower inflation rate could lower expectations for further interest rate hikes from the Federal Reserve, a development that is generally positive for financial markets, including stocks and digital assets.
The GDP report will provide a deeper understanding of the overall economic health. Meanwhile, consumer data could indicate whether households are still spending at healthy levels, which is crucial for market sentiment.
