As a seasoned crypto investor with years of experience under my belt, I can’t help but feel a mix of excitement and trepidation as we head into this busy economic week. The crypto markets have shown some impressive gains over the weekend, pushing total capitalization up to a six-week high. This trend was mainly fueled by Bitcoin’s surge past $68,000 in early Asian trading on Monday morning.
Crypto markets have made gains over the weekend, with total capitalization hitting a six-week high.
As a seasoned financial analyst with over a decade of experience under my belt, I can tell you that this week is particularly significant for those closely following economic trends. The much-anticipated Personal Consumption Expenditures (PCE) inflation data will be released, and it holds immense importance for us all. Why, you ask? Well, because it’s the Federal Reserve’s preferred measure of inflation, and its reading could sway their decision on a potential rate cut in September. In my career, I’ve seen numerous instances where such data releases have influenced monetary policy moves, and this time is no different. So, buckle up, folks – it’s going to be an exciting week!
An unexpected withdrawal of Joe Biden from the U.S. presidential race could cause significant market fluctuations during this economically active week.
Economic Events July 22 to 26
The preliminary readings for July’s Manufacturing and Services PMI (Purchasing Managers’ Index) reports from S&P Global will be released on Wednesday. These indices offer insights into the current state of businesses in the US manufacturing and service sectors.
On Thursdays, the anticipated announcement of the Q2 2024 Gross Domestic Product (GDP) growth rate report will be made public. This report offers an initial understanding of any shifts occurring within the economy regarding its annual growth rate.
Based on calculations, the economy expanded at a 2% quarterly rate during the second quarter, which is faster than the 1.4% yearly growth recorded in the first quarter. An unexpectedly strong figure might cause investors to reconsider their plans for further interest rate reductions from the central bank.
The highly anticipated weekly report is the Core Personal Consumption Expenditures (PCE) figure for June, set to be released on Friday. This data represents the typical monthly expenditures of consumers and serves as a crucial inflation indicator for the Federal Reserve’s monetary policymakers.
A decelerating rate of increase in Personal Consumption Expenditures (PCE) inflation and the persistence of this downward trend enhance the likelihood of a Federal Reserve interest rate reduction in September.
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
On Friday, we’ll get the latest Michigan Consumer Sentiment Index and Consumer Inflation Expectations reports for July. These releases will offer fresh insights into consumers’ long-term inflation outlooks.
The Kobeissi Letter observed, “We have a significant week approaching with the July Federal Reserve meeting only ten days off.”
Approximately twenty percent of the S&P 500 corporations released their earnings reports this week, among which were Alphabet, Google’s parent company, and Tesla led by Elon Musk.
On Tuesday, July 23rd, the long-anticipated Ethereum Exchange-Traded Funds (ETFs) are slated to debut in the market. This event might generate significant waves in the cryptocurrency sector as well.
Crypto Market Outlook
Over the weekend, the total value of the cryptocurrency market surpassed $2.6 trillion for the first time since early June. The significant increase can mainly be attributed to Bitcoin‘s price reaching an astounding $68,000 during early trading hours in Asia on Monday morning.
The value of the asset fell beneath $66,000 following the announcement of Biden’s departure from the presidential contest, yet it bounced back promptly.
The majority of alternative cryptocurrencies are experiencing growth this Monday morning. Notable increases are seen in Solana (SOL), Dogecoin (DOGE), and Avalanche (AVAX).
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2024-07-22 09:17