Markets
Will this week’s economic events shake up crypto markets?
Highlights of the upcoming economic week include minutes from the Federal Reserve meeting and a major earnings report from semiconductor giant Nvidia.
There are also reports on global manufacturing and services indexes and consumer inflation expectations that could influence markets somewhat.
Economic calendar from May 20 to 24
Last week, the American Dow Jones Industrial Average (DJIA) crossed the 40,000 point mark for the first time. The stock market rally was boosted by favorable figures from the CPI reportwhich sparked speculation that the US economy was cooling and the central bank could cut rates in the coming months.
Minutes from the Federal Reserve’s May FOMC meeting will be released on Wednesday this week. These could offer more insight into upcoming monetary policy and a projected timetable for rate cuts.
On Thursday, the preliminary May Global Manufacturing PMI report will be released, outlining business conditions in the manufacturing sector.
May 23 will also see a similar PMI report for the services sector. This is a crucial leading indicator since the service sector is responsible for more than 70% of total U.S. GDP and a signal of changing economic conditions.
On Friday, we’ll see the May Michigan Consumer Sentiment Index, which measures inflation expectations. These reports present the results of a monthly survey of consumer confidence levels in the country.
On Wednesday, there will also be a highly anticipated quarterly earnings report from the semiconductor giant. Nvidia which could keep tech stocks and crypto on a roll.
“The bulls want Nvidia to extend its run to record highs, and the bears want Nvidia to mark the peak,” commented Kobeissi’s May 19 letter.
Asian markets regained momentum on Monday May 20, following Wall Street’s gains. Investors across the region are awaiting their own economic data this week, with their eyes on Japan for inflation data and South Korea for a rate decision.
Impact on the crypto market
With no major economic events this week, cryptocurrency markets are unlikely to be significantly impacted and volatility will likely remain low.
Crypto markets were supported last week, with a total capitalization exceeding $2.5 trillion and maintaining gains over the weekend. However, they fell slightly over the last 24 hours, with a drop of 1.2%.
Bitcoin fell to an intraday low of $66,000, but found support there and returned to $67,000 at the time of writing during the Asian trading session on Monday morning.
Ethereum fell 1.3% on the day, falling back to $3,078 after hitting a weekend high of $3,142. THE altcoins were mostly in the red this Monday morning.