4 Things That Could Impact Crypto Markets in The Week Ahead

Crypto markets have been rallying for the past several days, however, things are starting to cool, with most digital assets correcting as this week begins.

The robust economic backdrop, coupled with the expected policy changes under Donald Trump’s administration, supports an optimistic outlook for crypto and tech stocks, especially assets associated with artificial intelligence.

Economic Events Nov. 25 to 29

Tuesday will see the release of the November Consumer Confidence Index report, which conveys the level of confidence that consumers have in economic activity, affecting spending, which has a direct impact on GDP.

The Federal Open Market Committee will meet on Tuesday to release the minutes from its most recent policy meeting on Nov. 6-7. The Fed cut its key interest rate by a quarter-point in response to the steady decline in inflation a fortnight ago.

Wednesday will see the Q3 2024 GDP Growth Annualized report, which provides an updated picture of the change in GDP. Economists project that the second estimate will confirm the 2.8% annualized rate of growth, which is a slight deceleration from Q2’s 3% increase.

October’s Core Personal Consumption Expenditures (PCE) report is also expected on Wednesday. This data reflects the average amount of money consumers spend monthly and is used by central bank policymakers as their primary inflation gauge.

“PCE inflation data will be market moving as odds of a December rate cut have receded,” commented the Kobeissi Letter.

Key Events This Week:

1. CB Consumer Confidence data – Tuesday

2. October New Home Sales data – Tuesday

3. FOMC Meeting Minutes – Tuesday

4. Q3 2024 GDP data – Wednesday

5. October PCE Inflation data – Wednesday

6. US Markets Closed for Thanksgiving – Thursday

A short but…

— The Kobeissi Letter (@KobeissiLetter) November 24, 2024

Traditional markets will be closed in the United States on Thursday for the Thanksgiving holiday, crypto doesn’t have holidays.

Crypto Markets Cooling

Total crypto market capitalization has dropped 3% from its record high over the weekend in a dip to $3.44 trillion during the Monday morning Asian trading session. More than a trillion dollars has entered the crypto space since the US presidential election earlier this month.

Bitcoin has dipped 2.5% since its Nov. 22 all-time high of $99,645, falling below $96,000 briefly on Sunday before recovering to trade at around $98,000 on Monday morning. A pullback is expected following gains of 20% over the past two weeks.

Ethereum hit resistance just above $3,400 again and has started to retreat marginally, dipping to $3,400 over the weekend.

The altcoins are mostly in the red at the moment, following solid gains over the past week. The exception is Near Protocol (NEAR), which is up 7.6% on the day, topping $7 for the first time since June.