Markets
Six things to watch this week as Bitcoin reclaims $63,000
Crypto markets started to recover over the weekend with a total capitalization gain of around 4%, mainly led by Bitcoin, which reclaimed the $63,000 level during Asian trading on Monday morning.
The economic calendar for this short week does not contain many notable reports, but could nevertheless shed light on the direction of the U.S. economic recovery.
Additionally, US jobs data could influence the likelihood of Federal Reserve rate cuts later this year, which could impact cryptocurrency markets as confidence in higher-risk assets returns.
Economic calendar from July 1 to 5
On Monday, we will see the release of the ISM Manufacturing PMI (Purchasing Managers Index) for June. This report shows business conditions in the manufacturing sector and provides an indicator of broader economic conditions. It is used to assess the state of the economy and forecast future trends.
A similar services PMI report is due Wednesday, shedding light on the state of the U.S. services sector, which contributes more than 70% of GDP. Changes in these PMI reports often precede changes in the broader economy.
Federal Reserve Chairman Jerome Powell will deliver remarks Tuesday at a European Central Bank conference, followed by the release of minutes from the Fed’s June meeting Wednesday. Those could provide insight into how central bankers view inflation, interest rates and the economy.
Unemployment data will be released on Friday and these reports will be closely monitored by the Fed to gauge the overall health of the economy.
Central bank officials said that with inflation improving, it was important to closely monitor employment. An unexpected rise in unemployment could prompt the Fed to take more aggressive action to cut interest rates, with the first expected in September.
However, unemployment claims continue to increase, according to the Kobeissi Letter.
Impact on the cryptocurrency market
Cryptocurrency markets are expected to continue their slow recovery if economic data from the United States is positive.
Markets have been largely constrained in terms of total capitalization since late February, hovering around $2.5 trillion. However, they reached the lower end of this range during last week’s decline.
Bitcoin has gained 3% in the past 24 hours, reaching $63,300 at the time of writing, its highest level in just over a week.
Ethereum prices gained a similar amount, reaching $3,483 ahead of key events ETF Announcements this week.
Altcoins were largely in the green, with larger gains for Solana (SOL), Avalanche (AVAX), Chainlink (LINK) and Near Protocol (NEAR).