Crypto Chaos: Will This Week’s Events Send Prices Soaring or Plummeting? 🤔💸

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Ah, dear reader, brace yourself for a week that promises to be as tumultuous as a cat in a bathtub! The air is thick with anticipation as jobs reports and the grandiloquent speeches of the Federal Reserve prepare to take center stage, following a week that left the markets in a state of disarray akin to a circus without a ringmaster.

In a delightful twist of fate, the second estimate for Q4 GDP has revealed that our economy is galloping along at a robust 2.3% pace, propelled by the insatiable appetites of consumers and the ever-generous government. Yet, lurking in the shadows are the ominous specters of potential spending cuts and trade tariffs, casting doubt on the future like a cloud of smoke from a poorly rolled cigarette.

And what of last Friday’s Core PCE, that beloved measure of inflation? It offered a glimmer of relief, like a cool breeze on a sweltering summer day, but let’s not pop the champagne just yet!

“The next Fed meeting is just 16 days away, and it comes amid major market volatility,” quipped the Kobeissi Letter, as if we needed another reason to clutch our pearls.

Economic Events Mar. 3 to 7

On Monday, we shall be graced with February’s ISM Manufacturing PMI, a delightful little morsel that provides a peek into the business conditions of the US manufacturing sector. It’s like a crystal ball for economic conditions, but with less mystique and more spreadsheets.

Then, on Wednesday, the ISM Services PMI will make its grand entrance, revealing the state of the services sector, which, let’s be honest, is the real heavyweight champion of the US GDP, contributing over 70% of it. Talk about a diva!

As if that weren’t enough, we’ll also be treated to a parade of labor market reports this week, including the ADP nonfarm employment data, initial jobless claims, and the February Jobs Report on Friday. These reports are the economic equivalent of a doctor’s check-up, revealing the health of our beloved economy.

“Layoffs are likely to accumulate more over time given the [Trump] administration’s plan to further reduce the Federal workforce,” mused Bank of America’s economists, as if they were predicting the weather.

Key Events This Week:

1. February ISM Manufacturing PMI data – Monday

2. ADP Nonfarm Employment data – Wednesday

3. Initial Jobless Claims data – Thursday

4. February Jobs Report – Friday

5. Fed Chair Powell Speaks – Friday

6. Total of 9 Fed Speaker Events This Week

This…

— The Kobeissi Letter (@KobeissiLetter) March 2, 2025

Ah, and let us not forget the nine Federal Reserve speaker events this week, which may or may not provide us with a glimpse into the likelihood of a rate cut on March 19. According to the CME Fed Watch Tool, there’s a 95% chance that rates will remain unchanged. So, hold onto your hats, folks!

Crypto Market Surges

In a twist worthy of a Shakespearean comedy, the crypto markets have been given a jolt by none other than Donald Trump’s announcement of a US crypto reserve. This reserve, which will cradle BTC and ETH like a mother hen, may also include XRP, SOL, and ADA. Who knew crypto could be so familial?

This announcement sent prices soaring like a kite in a hurricane, with markets adding a staggering $300 billion in mere hours, propelling total capitalization by 8% to a jaw-dropping $3.2 trillion. It’s enough to make one’s head spin!

Bitcoin, that elusive creature, surged by nearly $10,000, reaching an intraday high of $94,900 before retreating like a shy turtle during Monday trading in Asia. Ethereum, not to be outdone, jumped 10% to surpass $2,500, though it still lags behind its more flamboyant altcoin cousins.

The biggest winners of the day? XRP, with a dazzling 35% increase to $3, Solana (SOL) adding a respectable 18% to top $175, and Cardano (ADA) soaring 60% to reclaim the coveted $1 mark. It’s a ver

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2025-03-03 09:34