Markets
Will this week’s US GDP data send crypto markets into an even bigger spiral?
This week, investors are focusing on key reports that could provide insight into the health and outlook of the U.S. economy.
The most anticipated is the Personal Consumption Expenditures (PCE) report, which is the Federal Reserve’s preferred inflation indicator.
There are also reports on consumer confidence and inflation forecasts that could shake up markets.
Economic events from June 24 to 28
Consumer confidence data will be released on Tuesday, providing insight into sentiment and the state of the economic recovery. However, the first of the big reports will be released on Thursday with the annualized GDP growth for the first quarter of 2024 (final estimate).
The second estimate shows economic growth slowing to 1.3% annualized, compared to 3.4% in the fourth quarter, and the final estimate is expected to confirm these figures.
“All eyes are on the GDP data as recent figures suggest we could be seeing stagflation,” macroeconomic journal The Kobeissi Letter commented in an article on X on June 24.
Friday June 28 will be a busy day. The May Core PCE is released, and investors and policymakers will be watching. Following May’s lower-than-expected CPI numbers, this report will be closely watched for continued disinflationary trends.
The May personal income and personal spending reports will also be released Friday. This data reflects total personal income and consumer purchases in the United States, providing crucial information about overall economic health and potentially influencing central bank decisions.
Finally, the Michigan Consumer Confidence Index and June consumer inflation expectations are also due Friday. These reports show consumer confidence levels and long-term inflation expectations, which impact consumer spending and are also factored into the Fed’s inflation expectations calculations.
There are also a total of 8 Fed conferences this week.
Crypto Market Outlook
With such a busy week of data on the economic calendar, there could be more volatility for risky assets such as crypto.
Total capitalization fell another 5% in the last 24 hours to a six-week low of $2.35 trillion. Markets are down 11% so far this month, with about $300 billion flowing out of space.
Bitcoin slipped 4% in a fall towards $61,000, but has managed to hold above at $61,300 at the time of writing.
Ethereum was in greater painfalling to a six-week low of $3,310 during Monday’s Asian trading.
Altcoins continued to bleed with heavier losses for Solana (SOL), Dogecoin (DOGE), Shiba Inu (SHIB), and Avalanche (AVAX), which fell to its level. lowest level this year during the weekend.