Markets
Cryptocurrency: 6 Key Events to Watch This Week!
3pm ▪ 4 minute read ▪ by Evans S.
This week looks promising for cryptocurrency enthusiasts, with major events likely to impact the market. From analyzing economic indicators to political announcements, here is an overview of the six key elements to watch for when anticipating cryptocurrency movements.
US Economic Indicators in the Spotlight
The week will begin with the release of existing home sales on Tuesday. While it may seem trivial, real estate data often provides valuable insights into overall economic health. An increase in sales could boost investor confidence, which could, in turn, impact the cryptocurrency market.
We’ll get a sense of business conditions on Wednesday via the S&P Global manufacturing and services PMIs.
These indicators help gauge the health of the manufacturing and services sectors, two pillars of the U.S. economy. A solid performance in these sectors could support cryptocurrency prices, increasing market optimism.
The highlight of the week in terms of economic indicators will be the release of second-quarter GDP data next Thursday.
With growth expectations at 2%, a positive surprise could push expectations of rate cuts from the Federal Reserve into the background, impacting financial markets and, consequently, cryptocurrencies.
PCE Inflation: A Key Indicator for the Fed
On Friday, all eyes will be on June PCE inflation data. In fact, the core Personal Consumption Expenditures index is one of the Federal Reserve’s favorite indicators for assessing inflation.
A continued decline in this index could increase the chances of an interest rate cut in September, which would be beneficial for the cryptocurrency market.
Additionally, the Michigan Consumer Sentiment Index will be released on Friday. This indicator provides valuable insights into consumers’ long-term inflation expectations. High sentiment could support markets in general, including cryptocurrencies.
This week, about 20% of S&P 500 companies will report their quarterly results. Giants like Alphabet and Tesla are about to reveal their performance, which could create significant movements in the stock market and indirectly affect cryptocurrencies.
Cryptocurrency Market in an Uptrend
At the start of the week, the total cryptocurrency market capitalization hit its highest level in six weeks, peaking at $2.6 trillion. This positive momentum is largely driven by Bitcoin, which surpassed the $68,000 mark in early Asian trading on Monday morning. Although Joe Biden’s announcement that he was withdrawing from the presidential race temporarily sent Bitcoin below $66,000, it quickly rebounded.
Altcoins were not left behind, with Solana (SOL), Dogecoin (DOGE), and Avalanche (AVAX) posting significant gains on Monday morning. This uptrend could continue if the week’s economic and political events confirm the market’s positive expectations.
Another item to watch is the IPO of Ethereum spot ETFs, scheduled for this Tuesday, July 23. This new feature could attract a new influx of investment into Ethereum, creating greater volatility and profit opportunities for investors.
In short, this week is full of events that could cause significant fluctuations in the cryptocurrency market. In fact, from economic indicators to political announcements, each element can play a crucial role in the future direction of cryptocurrency prices.
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by Evans S.
Fascinated by bitcoin since 2017, Evariste has not stopped documenting himself on the subject. If his main interest is on trading, the wise man is desperate to discover all the advanced centers on cryptocurrencies. As an editor, he aspires to permanently provide high-quality work that reflects the state of the sector as a whole.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Do your own research before making any investment decisions.