Markets
Will crypto markets continue to rise based on this week’s economic data?
Markets rallied strongly following last week’s Federal Reserve move and the premise of more liquidity being injected.
Total crypto capitalization returned to pre-rewind levels, closing again at $2.5 trillion over the weekend and returning to the middle of its limited channel.
This week’s economic calendar will not be as volatile like last week. “After several weeks of uninterrupted economic and inflation data, markets are able to digest this week”, commented Carta Kobeissi.
“There is a lot of related macro news this week, but the impact is limited and, unsurprisingly, the Fed has maintained current rates for the past few months,” he said crypto derivatives provider Greeks Live.
Economic Calendar
The change in consumer credit for March will be released on Tuesday, calculating the change in the total value of outstanding credit granted to individuals for personal expenses.
Investors and analysts are paying close attention to this data, as changes in consumer credit have a strong correlation with both consumer confidence and spending.
Initial unemployment claims data will be released on Thursday and are expected to increase slightly from the previous month.
Friday we will look at the preliminary reading of the Michigan Consumer Sentiment Index for May, a report that provides the results of a monthly survey of consumer confidence levels.
The May preliminary report on Consumer Inflation Expectations will also be released on Friday. This University of Michigan survey analyzes consumers’ views on long-term inflation and is used as a component of the Fed’s calculations on inflation expectations.
In addition to the economic reports, there will be eight speeches from the Federal Reserve this week, and with the latest data on inflation and employment not looking positive, these speeches could cause some volatility.
There are several important earnings reports released this week, but none of them are related to digital asset markets.
Crypto Market Outlook
Crypto markets rose 1.7% on the day, reaching $2.49 trillion during Monday morning Asian trading.
Weekend volumes were muted, but gains were maintained and bitcoin regained key price levels. The asset is currently trading around $64,000, having reached an intraday high of $64,500 at the end of Sunday’s trading session.
Ethereum prices are up 1.6%, reaching $3,170 at the time of writing. The asset is also back in its consolidation channel and did not stay below $3,000 for long.
Altcoins are also showing marginal gains today. Toncoin (TON), Near Protocol (NEAR), and artificial intelligence tokens Fetch.ai (FET) and Render (RNDR) are doing particularly well.