Can Crypto Markets Recover on This Week’s Economic Data and Earnings?

Crypto markets have been battered over the past week but started to show signs of recovery during the Monday morning trading session in Asia.

However, another busy economic calendar week lies ahead and political tensions in the Middle East have escalated so investors may seek flight to safe-haven assets.

Markets will also focus on earnings, with this week’s releases spread between various economic sectors including banking and finance.

Key Events This Week:

1. March Retail Sales data – Monday

2. Fed Chair Powell Speaks – Tuesday

3. Existing Home Sales data – Thursday

4. Philly Fed Manufacturing Index – Thursday

5. ~10% of S&P 500 companies report earnings

6. Total of 13 Fed speaker events this week

All…

— The Kobeissi Letter (@KobeissiLetter) April 14, 2024

The Week Ahead

Monday will see the release of the March US retail sales data which could affect the Federal Reserve’s monetary policy. Recent hotter-than-expected inflation figures have added to concerns that the Fed may leave rates unchanged for longer.

Industrial production and manufacturing data are also due for release this week, which could shed light on the broader health of the economy.

On Thursday, jobless claims numbers will be seen potentially impacting spending power if there is an unexpected increase.

There are a total of 13 Federal Reserve speeches this week, including Chair Jerome Powell taking the stage on Tuesday. These are keenly eyed by investors for signals of shifts in monetary policy.

This week is also a big one for Q1 company earnings reports, with the banking sector in the spotlight. Notable earnings reports will be published by Goldman Sachs, Bank of America, and Morgan Stanley, among many smaller banks that will also be in focus.

Middle East conflicts continue to draw attention with upward pressure applied to commodities prices such as oil and gold.

Additionally, China’s economy will be in the spotlight, with Q1 GDP figures released on Tuesday potentially impacting appetite for riskier assets such as BTC.

Crypto Markets Recover

Crypto markets tanked to their lowest levels since early March over the weekend with a fall to $2.41 trillion in total capitalization.

There has been a slight recovery on Monday morning, however, with the total cap up 3.5% on the day to $2.48 trillion.

Bitcoin bounced off support at $62,000 to return to $65,000 at the time of writing, with the halving less than a week away. However, it has now lost 12% since its all-time high in mid-March.

Ethereum prices dipped below $3,000 on Sunday but recovered quickly to reach $3,150 during Asian trading on Monday.

Most of the altcoins are recovering, but they are nearly all down double digits over the past week.