Markets
Three Things That Could Influence Cryptocurrency Markets This Week
Cryptocurrency markets saw strong growth over the weekend, with over $100 billion added to the total market capitalization.
Although this week’s economic events calendar is not as influential as the last weekswhich included key inflation reports, this could still have an impact.
Here are some things to watch in the week ahead as the main market catalyst appears to be shifting to earnings season.
Economic calendar from July 15 to 19
Last week’s CPI report showed the first monthly decline in inflation in four years, and markets reacted positively.
Retail sales data for June will be released Tuesday in a report that will provide information on how much money consumers are spending on a variety of durable and nondurable goods. It is used to gauge the overall health of the economy in addition to consumer spending habits and inflationary pressures.
Industrial production reports, which are expected to be released on Wednesday, are expected to show the volume of production of U.S. industries. However, this is not expected to have an impact on cryptocurrency markets.
Reports on home sales and manufacturing data are due this week, but these also have little impact on risky asset markets.
“Earnings season will lead us directly into the July Fed meeting, and volatility is back,” the Kobeissi Letter commented in an article published on X on July 14.
Federal Reserve Chairman Jerome Powell speaks Monday, and his comments are still being closely watched by investors looking for signals of a change in monetary policy.
Last week, Powell’s testimony before Congress boosted investor sentiment, sparking a flurry of bets on an interest rate cut and raising the odds of two rate cuts, the first in September.
Additionally, the Q2 2024 earnings season is picking up steam this week. Several reports are expected to grab investors’ attention, including: big banks such as Goldman Sachs, Bank of America and Morgan Stanley.
Cryptocurrency Market Outlook
Cryptocurrency markets rallied over the weekend, with total capitalization surpassing $2.4 trillion for the first time in a fortnight.
However, the trend has been downward since the beginning of June and it is too early to say whether this trend has reversed.
Bitcoin has progressed The stock has gained 4.7% in the past 24 hours, hitting $63,000 on Monday morning in Asia. The asset has now recovered 16% since its correction low on July 5.
The rest of the market followed suit, with Ethereum hitting a two-week high of $3,360 and altcoins such as Solana (SOL), Chainlink (LINK) and Near Protocol (NEAR) gaining more than 5% on the day.