Markets
Can this week’s economic data shake crypto markets out of lethargy?
Crypto markets remained stable over the weekend, with very little movement for the majors and total capitalization remaining around $2.54 trillion, at last week’s level.
There is a public holiday on Wednesday in the United States, so stock markets will be closed and crypto markets will likely be quiet.
Nonetheless, retail sales data and PMI (purchasing managers index) reports can shed some light on the direction of the trend. economic recovery.
Economic calendar from June 17 to 21
May retail sales reports are due Tuesday, providing information on consumer spending on durable and non-durable goods, which helps gauge the health of the economy, consumer spending habits and pressures inflationary pressures on the demand side.
Reports on US industrial production are also due on May 18, but they have little impact on the broader market and business activity.
The S&P Global Manufacturing PMI report for June is due Friday. This data captures business conditions in the manufacturing sector, which contributes significantly to total GDP and is considered an important indicator of business conditions and the overall economic climate in the United States.
Many analysts now believe that the Federal Reserve’s policy outlook is leaning toward a more conservative stance.
However, if economic reports in the coming months confirm the outlook for disinflation and a return to normal price pressures, expectations for a rate cut could be brought forward.
This would be good for high-risk assets like altcoinsbecause more liquidity and lower rates mean easier access to capital for investments.
However, the US central bank now only plans one rate cut this year, compared to the three it predicted in March, so the new season could still be a few months away.
Impact on the crypto market
This week’s economic reports are unlikely to impact crypto asset markets, which is why another week of low volatility is expected.
Bitcoin has fallen again, currently trading below $66,000, after spending the weekend. blocked a little above this level.
Ethereum reached $3,645 during Asian trading but lost those gains over the past few hours, falling back below $3,500.
There was more red than green on altcoins, with larger losses for Shiba Inu (SHIB), Avalanche (AVAX), Uniswap (UNI), and Near Protocol (NEAR).