4 Things That Could Impact Crypto Markets in The Week Ahead

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As a seasoned crypto investor with over a decade of experience navigating market fluctuations and economic events, I have learned to remain cautiously optimistic during periods of bullish rallies like the one we are witnessing currently. The robust economic backdrop and policy changes under President Trump’s administration, coupled with the potential growth in AI-associated assets, do indeed present an enticing outlook for crypto and tech stocks.

Over the last few days, cryptocurrency markets have experienced a surge. Lately, though, there seems to be a slowdown, as the majority of digital currencies are now adjusting downwards as we enter into this new week.

A strong economic foundation, combined with anticipated policy shifts during Donald Trump’s presidency, creates a positive atmosphere for cryptocurrencies and technology stocks, particularly those linked to artificial intelligence.

Economic Events Nov. 25 to 29

On Tuesday, we’ll get the latest November Consumer Confidence Survey results. This survey measures consumer trust in economic activities, influencing their spending habits, which ultimately affects the country’s overall Gross Domestic Product (GDP).

On Tuesday, the Federal Open Market Committee is set to convene and publish the records of their latest monetary policy gathering held on November 6-7. In reaction to the persistent drop in inflation observed two weeks prior, the Fed reduced its primary interest rate by a quarter percentage point.

On Wednesday, we’ll get the Q3 2024 GDP Growth Annualized report, offering a fresh look at the development in our country’s Gross Domestic Product (GDP). Economists anticipate that this second estimate will verify the 2.8% annual growth rate, representing a slight slowdown from the 3% expansion seen in Q2.

On Wednesday, we’re anticipating the release of October’s Core Personal Consumption Expenditure (PCE) report. This figure represents the typical monthly spending by consumers and serves as a key inflation indicator for central bank decision-makers.

The Kobeissi Letter noted that upcoming PCE inflation figures could significantly impact markets, as the likelihood of an interest rate reduction in December has decreased.

Key Events This Week:

1. CB Consumer Confidence data – Tuesday

2. October New Home Sales data – Tuesday

3. FOMC Meeting Minutes – Tuesday

4. Q3 2024 GDP data – Wednesday

5. October PCE Inflation data – Wednesday

6. US Markets Closed for Thanksgiving – Thursday

A short but…

— The Kobeissi Letter (@KobeissiLetter) November 24, 2024

In the U.S., traditional markets will be shut down on Thursday due to the Thanksgiving celebration; however, cryptocurrency markets do not observe holidays.

Crypto Markets Cooling

Over the weekend, the total value of all cryptocurrencies decreased by 3% from its peak, reaching approximately $3.44 trillion during the early hours of Monday’s Asian trading. Since the recent U.S. presidential election, more than a trillion dollars has been invested in the crypto market.

Since reaching its peak of $99,645 on November 22nd, Bitcoin has experienced a drop of approximately 2.5%, dipping below $96,000 for a short while on Sunday but rebounding to trade around $98,000 by Monday morning. This decrease comes after a two-week period during which it had gained about 20%. It is anticipated that Bitcoin may experience further pullback in the near future.

once more, Ethereum encountered resistance slightly above $3,400 and subsequently experienced a slight pullback, dropping down to around $3,400 during the weekend hours.

Currently, most altcoins are showing losses, having experienced significant growth during the previous week. However, an exception to this trend is Near Protocol (NEAR), which has surged by 7.6% today and has reached over $7 for the first time since June.

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2024-11-25 09:30