Markets
How will this week’s US economic data impact crypto markets?
Crypto markets remained relatively inactive over the weekend, holding on to gains made last week following approvals of spot Ethereum exchange-traded funds in the United States.
This week we will see the release of more economic data such as consumer confidence and gross domestic product indicators.
Economic Calendar May 27th to 31st
Monday is Memorial Day in the US, so markets will be closed and low volatility is expected for crypto assets.
Tuesday will see the release of data on consumer confidence, which improved slightly in May from the previous month, with better-than-expected weekly unemployment claims and manufacturing and services PMIs last week.
Thursday we will look at the Q1 2024 Annualized GDP Growth report, which provides an advanced estimate and insight into the health of the economy in the previous quarter.
However, the US Bureau of Economic Analysis estimates that the economy has slowed to 1.5% annualized growth, slightly lower than initial estimates.
On Friday, the Personal Consumption Expenditure (PCE) report for April will be released, which indicates the average amount that consumers spend monthly. Policy makers at the Federal Reserve’s FOMC look closely at this data as their main indicator of inflation and will use it to estimate whether inflation is falling.
A related Personal Income and Personal Spending report for April will also be released on Friday. This reflects the total value of personal income in America, in addition to the value of consumer purchases of all types of goods and services.
Consumer spending is a major driver of economic growth, so these reports can provide data on the global economy and impact the Fed’s monetary policy decisions.
There will also be a total of ten speeches from Federal Reserve chiefs this week.
Wholesale giant Costco, software company Salesforce and computer company HP are among the earnings reports to watch this week.
Crypto Market Outlook
Presidential candidate Donald Trump gave the crypto industry a huge potential boost over the weekend when he said he would support its future in America if elected.
However, it wasn’t enough to move markets, which hovered around the $2.7 trillion market capitalization level over the weekend.
Asian trading on Monday morning was muted. Bitcoin has fallen slightly and is just below $69,000 at the time of writing.
Ethereum prices were better, with a 4% gain on the day to reach $3,900 after the ETF approvalswhile altcoins remained largely mixed.