Three things that could influence cryptocurrency markets this week

Cryptocurrency markets rallied over the weekend, with over $100 billion added to the total market capitalization.

While this week’s calendar of economic events is not as influential as last weekswhich included important inflation reports, could still have an impact.

Here are a few things to keep an eye on in the coming week as the main market catalyst appears to be shifting to earnings season.

Economic Calendar July 15-19

Last week’s CPI report showed the first monthly decline in inflation in four years, and markets reacted positively.

Retail sales data for June will be released Tuesday in a report that provides insight into how much money consumers are spending on various durable and nondurable goods. It is used to gauge the overall health of the economy, as well as consumer spending habits and inflationary pressures.

Industrial production reports are set to be released on Wednesday, showing the output volume of US industries. However, this is unlikely to impact crypto markets.

There are home sales reports and manufacturing data due this week, but they too have little impact on risky asset markets.

“Earnings season will take us straight to the July Fed meeting, and volatility is back,” Kobeissi Letter commented in a July 14 X post.

Federal Reserve Chairman Jerome Powell speaks on Monday, and his comments are always closely watched by investors looking for signs of a shift in monetary policy.

Last week, Powell’s testimony before Congress boosted investor sentiment, sparking a flurry of bets on interest rate cuts and raising the odds of two rate cuts, the first in September.

Additionally, the Q2 2024 earnings season is kicking into much higher gear this week. There are several reports that investors should keep an eye on, including big banks such as Goldman Sachs, Bank of America and Morgan Stanley.

Cryptocurrency Market Outlook

Cryptocurrency markets traded higher over the weekend, with total market capitalization surpassing $2.4 trillion for the first time in a fortnight.

However, they have been trending downward since early June, and it is too early to say whether this trend has already reversed.

Bitcoin has recovered 4.7% in the past 24 hours, reaching $63,000 in Monday morning trading in Asia. The asset has now recovered 16% since its low correction on July 5.

The rest of the market is following suit, with Ethereum hitting a two-week high of $3,360 and altcoins like Solana (SOL), Chainlink (LINK) and Near Protocol (NEAR) gaining over 5% on the day.

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