Markets
Six things to watch for how the cryptocurrency market will impact this week
Cryptocurrency markets made gains over the weekend, with total capitalization hitting a six-week high.
All eyes are on PCE inflation data this week, as it is the Federal Reserve’s preferred measure of inflation and could influence a rate cut decision expected in September.
In addition, a major upheaval in the race for the American presidential election with Joe Biden deviates could also influence the markets in this very active period economic week in front.
Economic events from July 22 to 26
The S&P Global Manufacturing and Services PMIs for July are due out Wednesday. These reports provide a snapshot of economic conditions in the U.S. manufacturing and services sectors.
On Thursday, the annualized GDP growth report for the second quarter of 2024 will be released, providing a first glimpse of the evolution of gross domestic product,
GDP growth is estimated to have accelerated to 2% in the second quarter, from an annualized 1.4% in the first quarter. A higher-than-expected reading could delay expectations of a rate cut by the central bank.
The most important report of the week is core personal consumption expenditures (PCE) for June, which will be released Friday. The data reflects the average amount of money consumers spend each month and is a key gauge of inflation for Fed policymakers.
Slowing PCE inflation and continued disinflationary trend will support the chances of a rate cut in September.
Friday will also see the release of the July Michigan Consumer Confidence Index and reports on consumer inflation expectations, which will provide additional information on longer-term inflation.
“This is a huge week ahead with the July Fed meeting just 10 days away,” Kobeissi’s letter said.
About 20% of the S&P 500 companies reported results this week, including Google parent Alphabet and Elon Musk’s Tesla.
Tuesday July 23 is also the day of this long-awaited spot Ethereum ETF are should start to be negotiatedwhich could also impact cryptocurrency markets.
Cryptocurrency Market Outlook
The cryptocurrency market capitalization hit $2.6 trillion over the weekend, its highest level since early June. The surge was driven primarily by bitcoin, which surpassed $68,000 in early Asian trading Monday morning.
The asset fell below $66,000 on news of Biden’s withdrawal from the presidential race, but quickly recovered.
Most altcoins are in the green this Monday morning, with the biggest gains for Solana (SOL), Dogecoin (DOGE) and Avalanche (AVAX).