As a seasoned crypto investor with over a decade of market navigation under my belt, I must say that this week is shaping up to be a rollercoaster ride for us digital asset enthusiasts. The Fed’s interest rate cut has certainly injected some much-needed bullishness into the market, but the upcoming economic events demand our undivided attention.
Over the weekend, cryptocurrency markets maintained their increases from the previous week, thanks to an upward push from the Federal Reserve’s decision to reduce interest rates by 0.5%.
This week brings several updates on consumer confidence, national economic output (GDP), and additional information about inflation.
According to the Kobeissi Letter, as we approach the next Federal Reserve meeting, there could be increased market turbulence with bigger price fluctuations.
Economic Events Sept. 23 to 27
On Monday, the S&P Global Services PMI (purchasing managers index) report will be published, offering insights into the business climate within the services sector that plays a substantial role in the country’s GDP. Following this, consumer confidence reports will be released on Tuesday, providing information about the broader economic conditions and sentiment across the nation.
On Thursday, you’ll find the usual weekly employment figures, as well as durable goods orders, an update on Gross Domestic Product (GDP), and pending home sales data.
Every Friday, the Personal Consumption Expenditures (PCE) Price Index Report, a vital gauge for understanding inflation, gets released. This index is closely scrutinized by central bank officials when making their policy decisions.
Key Events This Week:
1. S&P Global Services PMI data – Monday
2. CB Consumer Confidence data – Tuesday
3. August New Home Sales data – Wednesday
4. August Durable Goods Orders data – Thursday
5. Q2 2024 Final GDP Reading – Thursday
6. August PCE Inflation data – Friday…
— The Kobeissi Letter (@KobeissiLetter) September 22, 2024
Focus is building up for the Federal Reserve’s upcoming meeting on November 7, where there’s speculation about another interest rate decrease. As per the CME Fed Watch tool, the odds are evenly split at 50%, suggesting a potential 25 basis point reduction or a more substantial 50-point cut.
On Mondays in Asia, stock markets moved within a limited bandwidth as investors considered various data points that intensified worries about the state of China’s economy, according to Bloomberg. Analyst Tony Sycamore from IG in Sydney put it simply: “The situation in China seems to be going from worse to even worse.
In Japan, the value of the yen decreased following an announcement by the Bank of Japan on Friday, suggesting that they have no immediate plans to increase interest rates once more.
Crypto Market Outlook
Over the last day, I’ve noticed that the crypto market has been holding steady for me, with a total market cap hovering around $2.31 trillion.
Over the last week, approximately $200 billion has flowed back into the investment category, boosted by the Federal Reserve’s decision to lower interest rates more than anticipated. This move was favorable for high-risk investments.
Over the weekend, Bitcoin generally stayed near the $63,000 mark, but it began to increase, almost reaching $65,000 during the Asian trading hours on Monday morning. In comparison to a week ago at the same time, its value has risen by approximately 9%.
After several weeks filled with negative sentiment (FUD), Ethereum saw an upward trend and reached over $2,600 during early Asian trading sessions. This surge led to a significant weekly increase of 14.5%.
In general, the performance of altcoins was varied, yet Binance Coin (BNB), Litecoin (LTC), Sui (SUI), and Bittensor (TAO) showed a slight edge in their respective performances.
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2024-09-23 08:21