The upcoming week is set to be busy with significant economic events in the United States, and the crypto market is showing positive momentum once again. Over the weekend, crypto markets saw gains, pushing the total market capitalization to a six-week high. Here are six key events to monitor that could impact the crypto market this week.
1. PCE Inflation Data
This week’s Personal Consumption Expenditures (PCE) inflation data is highly anticipated as it is a key indicator for the Federal Reserve. The outcome could influence a potential interest rate cut decision in September. Lower PCE inflation and continued disinflation trends will strengthen the likelihood of a September rate cut.
2. U.S. Presidential Election Update
A significant change in the U.S. presidential race occurred with Joe Biden stepping down. This development could have implications for the markets during this busy economic week.
3. S&P Global Manufacturing and Services PMI
Preliminary readings for July’s S&P Global Manufacturing PMI and Services PMI are scheduled for Wednesday. These reports will offer insights into business conditions in the manufacturing and services sectors in the U.S., providing an indication of the economic climate.
4. Q2 2024 GDP Growth Report
The Q2 2024 GDP growth annualized report will be released on Thursday, offering an early look at changes in gross domestic product. Predictions suggest GDP growth accelerated to 2% in the second quarter, up from a 1.4% annualized rate in Q1. A higher-than-expected result could delay central bank rate cut expectations.
5. Michigan Consumer Sentiment Index
On Friday, the Michigan Consumer Sentiment Index and Consumer Inflation Expectations reports for July will be released. These will provide additional insights into long-term inflation trends and consumer confidence levels.
6. S&P 500 Companies’ Earnings Reports
This week, around 20% of S&P 500 companies are set to report earnings, including major corporations like Alphabet (Google’s parent company) and Tesla. These earnings reports can significantly affect market sentiment and stock prices.
Additional Key Events
– Existing Home Sales Data: Set to be released on Tuesday, offering a view into the housing market’s condition.
– New Home Sales Data: Scheduled for Wednesday, providing further insights into the housing market.
Another notable event on Tuesday, July 23, is the anticipated start of trading for long-awaited spot Ethereum ETFs, which could further influence crypto markets.
Crypto Market Outlook
Over the weekend, the total crypto market capitalization reached $2.6 trillion, the highest level since early June. Bitcoin led this surge, hitting $68,000 in early Asian trading on Monday morning. Despite a brief dip below $66,000 following the news of Biden’s withdrawal from the presidential race, it quickly recovered.
Most altcoins are in positive territory this Monday morning, with significant gains for Solana (SOL), Dogecoin (DOGE), and Avalanche (AVAX).
Given the packed economic calendar, this week could see substantial movements in both traditional and crypto markets. Investors and traders should stay alert and prepared for potential volatility.
