Six Things to Watch for Crypto Market Impact This Week

Crypto markets have made gains over the weekend, with total capitalization hitting a six-week high.

All eyes are on PCE inflation data this week as it is the Federal Reserve’s preferred inflation measure and could influence a rate cut decision set for September.

Additionally, a big shake-up in the U.S. presidential election race as Joe Biden steps aside could also influence markets in this busy economic week ahead.

Economic Events July 22 to 26

July’s S&P Global Manufacturing PMI and Services PMI preliminary readings are due on Wednesday. These reports provide a snapshot of business conditions in the manufacturing and services sectors in the U.S.

Thursday will see the release of the Q2 2024 GDP growth annualized report, which provides an early insight into a change in gross domestic product,

According to estimates, the pace of GDP growth quickened to 2% in the second quarter, up from a 1.4% annualized rate for Q1. A higher-than-forecasted reading could lead to a delay in expectations for central bank rate cuts.

The major report for the week is June’s Core Personal Consumption Expenditures (PCE), which is due on Friday. This data reflects the average amount of money consumers spend monthly and is a key inflation gauge for Fed policymakers.

Slowing PCE inflation and a continued disinflation trend will support the odds of a September rate cut.

Key Events This Week:

1. Existing Home Sales data – Tuesday

2. New Home Sales data – Wednesday

3. Q2 2024 GDP data – Thursday

4. June PCE Inflation data – Friday

5. MI Consumer Sentiment data – Friday

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

Huge week ahead with the…

— The Kobeissi Letter (@KobeissiLetter) July 21, 2024

Friday, we will also see the release of July’s Michigan Consumer Sentiment Index and Consumer Inflation Expectations reports, which will provide further views of long-term inflation.

It is a “huge week ahead with the July Fed meeting just 10 days away,” commented the Kobeissi Letter.

Around 20% of S&P 500 companies reported earnings this week, including Google’s parent Alphabet and Elon Musk’s Tesla.

Tuesday, July 23, is also the day that long-awaited spot Ethereum ETFs are expected to begin trading, which could also impact crypto markets.

Crypto Market Outlook

Crypto market capitalization reached $2.6 trillion over the weekend, its highest level since early June. The move was primarily driven by Bitcoin, which topped $68,000 in early Asian trading on Monday morning.

The asset dumped below $66,000 on the news of Biden’s exit from the presidential race, but it quickly recovered.

Most of the altcoins are in the green this Monday morning, with larger gains for Solana (SOL), Dogecoin (DOGE), and Avalanche (AVAX).