Crypto: 6 Key Events to Watch This Week!
This week looks promising for crypto enthusiasts, with major events likely to influence the market. From economic indicator analysis to political announcements, here is an overview of the six key elements to watch closely to anticipate crypto movements.
U.S. Economic Indicators in the Spotlight
The week will start with the release of existing home sales this Tuesday. Although this may seem trivial, real estate figures often provide valuable insights into the overall economic health. A rise in sales could boost investor confidence, which could, in turn, impact the crypto market.
On Wednesday, we will get a glimpse of business conditions through the S&P Global manufacturing and services PMI indices.
These indicators help measure the health of the manufacturing and services sectors, two pillars of the American economy. Robust performance in these sectors could support crypto prices by boosting market optimism.
The highlight of the week in terms of economic indicators will be the release of second-quarter GDP data this Thursday.
With growth expectations at 2%, an upside surprise could push back the expectations of rate cuts by the Federal Reserve, thus impacting financial markets and, consequently, cryptos.
PCE Inflation: A Key Indicator for the Fed
On Friday, all eyes will be on the June PCE inflation data. Indeed, the core Personal Consumption Expenditures index is one of the Federal Reserve’s favorite indicators for assessing inflation.
A continuous decline in this index could enhance the chances of an interest rate cut in September, which would be beneficial for the cryptocurrency market.
Furthermore, the Michigan Consumer Sentiment Index will also be released on Friday. This indicator provides valuable insights into consumer expectations for long-term inflation. High confidence could support the markets in general, including cryptos.
This week will also see around 20% of S&P 500 companies release their quarterly results. Giants like Alphabet and Tesla are about to unveil their performances, which could create significant movements in the stock market and indirectly influence cryptos.
The Crypto Market in an Uptrend
At the start of the week, the total market capitalization of cryptocurrencies reached its highest level in six weeks, peaking at $2.6 trillion. This positive dynamic is largely driven by Bitcoin, which crossed the $68,000 mark in early Asian trading on Monday morning. Although the announcement of Joe Biden’s withdrawal from the presidential race temporarily dropped Bitcoin below $66,000, it quickly rebounded.
Altcoins are not left behind, with Solana (SOL), Dogecoin (DOGE), and Avalanche (AVAX) posting significant gains on Monday morning. This upward trend could continue if the week’s economic and political events confirm the market’s positive expectations.
Another element to watch is the IPO of spot Ethereum ETFs, scheduled for this Tuesday, July 23. This new feature could attract a fresh influx of investments towards Ethereum, creating increased volatility and opportunities for investor profits.
In summary, this week is packed with events likely to cause significant fluctuations in the cryptocurrency market. Indeed, from economic indicators to political announcements, each element can play a crucial role in the future direction of crypto prices.
