Markets
Three Things That Could Impact Cryptocurrency Markets This Week
Cryptocurrency markets surged over the weekend, with total market capitalization rising by more than $100 billion.
While this week’s economic events calendar isn’t as influential as The past few weekswhich included important reports on inflation, could still have an impact.
Here are some things to watch in the week ahead, as the main market catalyst looks to shift toward earnings season.
Economic Calendar July 15-19
Last week’s CPI report showed the first monthly decline in inflation in four years and markets reacted positively.
On Tuesday, June retail sales data will be released in a report that provides information on how much money consumers spend on various durable and nondurable goods. It is used to gauge the overall health of the economy as well as consumer spending habits and inflationary pressures.
Industrial production reports are expected on Wednesday, showing the production volume of US industries. However, this is unlikely to have any impact on cryptocurrency markets.
Home sales and manufacturing production reports are due this week, but they too have little impact on risky asset markets.
“Earnings season is leading straight into the July Fed meeting, and volatility is back,” the Kobeissi Letter commented in a July 14 post on X.
Federal Reserve Chairman Jerome Powell is scheduled to speak on Monday, and his comments are always closely watched by investors looking for signs of a change in monetary policy.
Powell’s testimony before Congress last week 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, Q2 2024 earnings season is shifting into much higher gear this week. There are several reports investors should keep an eye on, including big banks like Goldman Sachs, Bank of America and Morgan Stanley.
Cryptocurrency Market Outlook
Cryptocurrency markets rallied over the weekend, with the total market capitalization surpassing $2.4 trillion for the first time in two weeks.
However, since the beginning of June there has been a decreasing trend and it is still too early to say whether this trend has reversed.
Bitcoin on the upswing 4.7% in the last 24 hours, touching $63,000 in Monday morning trading in Asia. The asset has now recovered 16% from its July 5 correction low.
The rest of the market is following suit, with Ethereum hitting a two-week high of $3,360 and altcoins like Solana (SOL), Chainlink (LINK), and Near Protocol (NEAR) all gaining over 5% in a day.