Crypto Market Surge and US Economic Insights and Crypto Market Trends: What You Need to Know
Crypto Market Surge – This week promises to be eventful on the U.S. economic calendar, and the crypto market is experiencing a positive momentum. Over the weekend, the total cryptocurrency market capitalization surged to a six-week high, signaling renewed investor confidence.
Key Economic Events: July 22 to 26
S&P Global Manufacturing and Services PMI Reports
On Wednesday, preliminary readings for July’s S&P Global Manufacturing PMI and Services PMI will be released. These reports offer insights into the current conditions within the U.S. manufacturing and services sectors, providing early indicators of economic health.
Q2 2024 GDP Growth Report
Thursday will bring the annualized report for Q2 2024 GDP growth. This report is crucial as it provides an early indication of changes in gross domestic product. Current estimates suggest that GDP growth accelerated to 2% in the second quarter, up from 1.4% in Q1. If the actual reading exceeds forecasts, it could delay expectations for a central bank rate cut.
Core PCE Inflation Data
The highlight of the week is the June Core Personal Consumption Expenditures (PCE) report, scheduled for Friday. The Core PCE is a key inflation metric favored by the Federal Reserve and reflects the average monthly spending by consumers. A slowdown in PCE inflation could reinforce expectations for a rate cut in September. Additionally, Friday will see the release of July’s Michigan Consumer Sentiment Index and Consumer Inflation Expectations reports, offering further insights into long-term inflation trends.
S&P 500 Earnings Reports and Ethereum ETFs
This week will also feature earnings reports from about 20% of S&P 500 companies, including major players like Alphabet and Tesla. Tuesday, July 23, marks the anticipated start of trading for long-awaited spot Ethereum ETFs, which could have a significant impact on the crypto markets.
Crypto Market Outlook
The cryptocurrency market capitalization reached $2.6 trillion over the weekend, marking its highest level since early June. This increase was largely driven by Bitcoin, which briefly surpassed $68,000 during early Asian trading on Monday. Despite a drop below $66,000 following news of President Joe Biden’s exit from the presidential race, Bitcoin quickly rebounded.
Most altcoins are showing gains this Monday morning, with notable increases in Solana (SOL), Dogecoin (DOGE), and Avalanche (AVAX).
As the economic data rolls out and Ethereum ETFs begin trading, market participants will be closely monitoring these developments for potential impacts on both traditional and crypto markets.
FAQ
What are the key economic events to watch for this week?
This week, key economic events include the preliminary readings of July’s S&P Global Manufacturing PMI and Services PMI, the Q2 2024 GDP growth report, and June’s Core Personal Consumption Expenditures (PCE) data. Additionally, the Michigan Consumer Sentiment Index and Consumer Inflation Expectations reports will be released.
How might the PCE inflation data affect the Federal Reserve’s decisions?
The Core Personal Consumption Expenditures (PCE) inflation data is a crucial measure for the Federal Reserve. A higher-than-expected reading could influence the Fed’s decision regarding a rate cut, potentially delaying any anticipated reduction in interest rates.
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