Markets
Will This Week’s US GDP Data Boost Cryptocurrency Markets Further?
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 serves as the Federal Reserve’s preferred inflation indicator.
There are also reports on consumer confidence and inflation expectations data that could shake up the markets.
Economic events from 24 to 28 June
Consumer confidence data will be released on Tuesday, offering an overview of sentiment and the state of the economic recovery. However, the first of the big reports will come out on Thursday with the annualized GDP growth for Q1 2024 (final estimate).
The second estimate showed economic growth slowing to 1.3% annualized, down from 3.4% in the fourth quarter, and the final estimate is expected to confirm these figures.
“All eyes are on GDP data as recent data suggests we may be witnessing stagflation,” macroeconomic daily The Kobeissi Letter commented in a June 24 X post.
Friday 28 June will be a busy day. The May Core PCE is released and investors and policymakers will be keeping an eye on it. Following May’s lower-than-expected CPI data, this report will be closely monitored for any disinflationary trends.
Personal income and personal spending reports for May will also be released on Friday. This data reflects the total personal income and purchases of consumers in America, providing crucial information about overall economic health and potentially influencing central bank decisions.
Finally, the Michigan Consumer Confidence Index and June Consumer Inflation Expectations will also be released on Friday. These reports show consumer confidence levels and long-term inflation expectations, which affect consumer spending and also impact the Fed’s inflation expectations calculations.
There are also a total of 8 events with Fed speakers this week.
Cryptocurrency market outlook
With such a data-rich week on the economic calendar, there could be more volatility for risky assets like cryptocurrencies.
Total capitalization fell a further 5% in the past 24 hours, hitting a six-week low of $2.35 trillion. Markets have fallen 11% this month, with about $300 billion going out.
Bitcoin slipped 4% in a fall towards $61,000, but managed to stay above it trading at $61,300 as of this writing.
Ethereum was in greater painfalling to a six-week low of $3,310 during Asian trading on Monday.
Altcoins continued to bleed with heavier losses for Solana (SOL), Dogecoin (DOGE), Shiba Inu (SHIB) and Avalanche (AVAX), which fell to lowest level this year during the weekend.