Markets
Will this week’s economic data lift cryptocurrency markets out of hibernation?
Cryptocurrency markets remained sideways over the weekend, with very little movement for the majors and total capitalization remaining around $2.54 trillion, where it was last week.
Wednesday is a public holiday in the United States, so stock markets will be closed and cryptocurrency markets will likely be quiet.
However, retail sales data and PMI (purchasing managers’ index) reports could shed light on the direction economic recovery.
Economic calendar June 17-21
May retail sales reports will be released on Tuesday, providing information on consumer spending on durable and non-durable goods, which help gauge the health of the economy, consumer spending habits and demand-side inflationary pressures .
Reports on US industrial production are also due on May 18, but have little impact on the broader market and trading activity.
The S&P Global Manufacturing PMI report for June is expected on Friday. This data captures business conditions in the manufacturing sector, which contributes significantly to total GDP and is considered an important indicator of business conditions and the overall economic climate in the United States
Many analysts now believe the Federal Reserve’s policy outlook is trending toward a more conservative stance.
However, if economic reports over the next two months confirm the prospects of disinflation and a return to normal price pressures, rate cut expectations could be brought forward.
This would be positive for high-risk assets like altcoinsas greater liquidity and lower rates mean easier access to capital for investments.
However, the US central bank now expects just one rate cut this year, down from three forecast in March, so the altseason could still be a few months away.
Impact on the cryptocurrency market
This week’s economic reports are unlikely to impact cryptocurrency markets, so another week of low volatility is expected.
Bitcoin fell once again, currently trading below $66,000, after spending the weekend glued just above that level.
Ethereum reached $3,645 during Asian trade, but lost those gains in recent hours, falling back below $3,500.
There was more red than green among altcoins, with biggest losses for Shiba Inu (SHIB), Avalanche (AVAX), Uniswap (UNI), and Near Protocol (NEAR).