Will Crypto Markets Keep Climbing on This Week’s Economic Data?

Markets rebounded strongly following last week’s Federal Reserve pivot and the premise of more liquidity being injected.

Total crypto capitalization returned to pre-pullback levels, closing on $2.5 trillion again over the weekend and going back to the middle of its range-bound channel.

This week’s economic calendar will not be as volatile as last week’s. “After several weeks of nonstop economic and inflation data, markets get to digest this week,” commented the Kobeissi Letter.

“There are multiple macro-related news this week, but the impact is limited, and unsurprisingly, the Fed has maintained current rates in recent months,” said crypto derivatives provider Greeks Live.

Economic Calendar

March’s Consumer Credit Change will be reported on Tuesday, calculating the change in the total amount of outstanding credit extended to individuals for personal expenditures.

Investors and analysts eye this data as the change in consumer credit has a strong correlation with both consumer confidence and expenditures.

Initial Jobless Claims data is out on Thursday and this is expected to increase a little from the previous month.

Friday will see the preliminary reading of May’s Michigan Consumer Sentiment Index, a report that provides the results of a monthly survey of consumer confidence levels.

May’s preliminary Consumer Inflation Expectations report will also be released on Friday. This University of Michigan survey analyses consumer views of long-term inflation and is used as a component of the Fed’s calculations of inflation expectations.

Key Events This Week:

1. EIA Short-Term Energy Outlook – Tuesday

2. 10-Year Note Auction – Wednesday

3. Initial Jobless Claims data – Thursday

4. MI Consumer Sentiment data – Friday

5. Total of 8 Fed speaker events this week

6. ~20% of S&P 500 companies report earnings

A…

— The Kobeissi Letter (@KobeissiLetter) May 5, 2024

In addition to the economic reports, there will be eight Federal Reserve speeches this week, and with the most recent inflation and jobs data not looking positive, these speeches could cause some volatility.

There are several major earnings reports released this week, but none of them are related to digital asset markets.

Crypto Market Outlook

Crypto markets are up 1.7% on the day to reach $2.49 trillion during the Monday morning Asian trading session.

Weekend volumes were muted, but gains were held, and bitcoin recovered key price levels. The asset is currently trading at around $64,000, having tapped an intraday high of $64,500 in late trading on Sunday.

Ethereum prices are up 1.6% to reach $3,170 at the time of writing. The asset is also back within its consolidation channel and did not spend much time below $3,000.

The altcoins are also showing marginal gains today. Toncoin (TON), Near Protocol (NEAR), and artificial intelligence tokens Fetch.ai (FET) and Render (RNDR) are doing particularly well.