Crypto markets spent most of the weekend flat but have taken a dip over the past few hours in the usual Monday morning retreat.
All three US stock indices hit new all-time highs on Friday, driven by Fed rate cut optimism and tech sector strength. Market sentiment was also supported by positive vibes from the ongoing US-China trade discussions.
“The markets are looking ahead to the October and December Fed meetings as more data comes in,” said the Kobeissi Letter.
Economic Events Sept. 22 to 26
Federal Reserve Chair Jerome Powell speaks on Tuesday, and investors will be seeking clarity about the central bank’s policy trajectory following last week’s rate cut. Powell’s tone and specific language are particularly important for rate-sensitive sectors such as crypto.
Wednesday has new housing sales data, and Thursday has existing sales data, which will shine light on the housing market in the US, but the big reports start to come in on Thursday.
Thursday’s Q2 GDP revision will provide updated insights into economic momentum, business investment, and consumer spending patterns that influenced the Fed’s recent policy decision.
Friday will see the Core PCE reading, which represents the Fed’s preferred inflation measure. The Personal Consumption Expenditures Index tracks changes in inflation based on consumer spending.
Friday also sees September’s Michigan Consumer Sentiment Index and Consumer Inflation Expectations preliminary readings, which summarize consumer confidence and long-term inflation expectations.
Key Events This Week:
1. Fed Chair Powell Speaks – Tuesday
2. August New Home Sales data – Wednesday
3. August Durable Goods Orders data – Thursday
4. US Q2 2025 GDP data – Thursday
5. August Existing Home Sales data – Thursday
6. August PCE Inflation data – Friday
We have…
— The Kobeissi Letter (@KobeissiLetter) September 21, 2025
“We cannot ignore the fact that monetary policy is entering a new era,” said the Kobeissi Letter, which added “stagflation is being met by interest rate cuts” as the wealth gap widens.
Crypto Market Outlook
Crypto markets spent the weekend hovering around $4.1 trillion with no major movements amongst the high-cap assets. Monday morning trading in Asia has turned red again, with over $75 billion exiting the space over the past few hours.
Bitcoin has fallen back to $114,300, its lowest level for ten days after failing to break resistance at $118,000 late last week. If current levels cannot hold, a dip back to $110,000 is looking likely.
Ethereum has also weakened, losing 4% in a fall below $4,300 for the first time in a fortnight. The altcoins were also a sea of red with heavier losses for Dogecoin and Hyperliquid after Arthur Hayes sold his stash.
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