This week is shaping up to be a promising one for crypto enthusiasts, with major events likely to influence the market. From economic indicator analysis to political announcements, here’s a look at six things to watch closely to anticipate crypto movements.
US economic indices in focus
The start of the week will see the release of existing home sales on Tuesday. While this may seem innocuous, real estate figures often provide valuable clues about the overall health of the economy. A rise in sales could boost investor confidence, which could spill over into the crypto market.
On Wednesday, we will get a glimpse of business conditions with the S&P Global Manufacturing and Services PMIs.
These indicators help measure the health of the manufacturing and services sectors, two pillars of the U.S. economy. A robust performance in these sectors could support crypto prices, reinforcing 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 expectations of a rate cut by the Federal Reserve, impacting financial markets and, in turn, cryptos.
PCE inflation: a key indicator for the Fed
On Friday, all eyes will be on June PCE inflation data. That's because the core personal consumption expenditures index is one of the Federal Reserve's favorite indicators for assessing inflation.
A continued decline in this index could strengthen the chances of an interest rate cut in September, which would be beneficial for the cryptocurrency market.
Meanwhile, the Michigan Consumer Confidence Index will also be released on Friday. This indicator provides valuable insights into consumers’ expectations for long-term inflation. High confidence could support broader markets, including crypto.
This week will also see about 20% of S&P 500 companies release their quarterly results. Giants like Alphabet and Tesla are set to unveil their performance, which could create significant moves in the stock market and indirectly influence cryptos.
The crypto market is booming
The total cryptocurrency market cap hit a six-week high earlier this week, peaking at $2.6 trillion. This positive momentum was largely driven by bitcoin, which broke through $68,000 in early Asian trading on Monday morning. Although news of Joe Biden’s withdrawal from the presidential race temporarily sent bitcoin below $66,000, the asset quickly recovered.
Altcoins are not far behind, with Solana (SOL), Dogecoin (DOGE), and Avalanche (AVAX) posting significant gains this Monday morning. This bullish trend could continue if the economic and political events of the week confirm the market’s positive expectations.
Another item to watchr is the IPO of Ethereum spot ETFs, scheduled for this Tuesday, July 23. This news could attract a new influx of investments into Ethereum, creating increased volatility and profit opportunities for investors.
In summary, this week is full of events that could 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.
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