Markets
Will this week’s economic events shake up crypto markets?
Highlights of the upcoming economic week are Federal Reserve meeting minutes and a big earnings report from semiconductor giant Nvidia.
There are also reports on global production and services indices and consumer inflation expectations that may influence markets somewhat.
Economic Calendar May 20th to 24th
Last week, the US Dow Jones Industrial Average (DJIA) surpassed the 40,000 mark for the first time. The stock rally was driven by favorable numbers in the CPI Reportwhich has led to speculation that the US economy is cooling and that the central bank may cut rates in the coming months.
The minutes of the Federal Reserve FOMC’s May meeting will be revealed on Wednesday this week. These can offer more information about monetary policy going forward and a projected timeline for rate cuts.
On Thursday, the preliminary Global Manufacturing PMI report for May will be released, capturing business conditions in the manufacturing sector.
A similar PMI report for the services sector will also be published on May 23. This is a crucial leading indicator as the services sector accounts for more than 70% of total US GDP and a signal for changing economic conditions.
Friday, we’ll look at the Michigan Consumer Sentiment Index for May, which measures inflation expectations. These reports portray the results of a monthly survey on consumer confidence levels in the country.
Wednesday also has a highly anticipated quarterly earnings report from the semiconductor giant Nvidia which could keep technology and crypto stocks higher.
“The bulls want Nvidia to extend the run to record highs and the bears want Nvidia to mark the top,” commented the Kobeissi Letter on May 19.
Markets in Asia rose on Monday, May 20, tracking Wall Street’s gains. Investors in the region await their own sets of economic data this week, with eyes on Japan for inflation data and South Korea for a rate decision.
Impact on the crypto market
With no major economic events this week, crypto markets are unlikely to be heavily impacted and volatility will likely remain low.
Crypto markets have been boosted last week, with total capitalization surpassing US$2.5 trillion and maintaining gains over the weekend. However, they have fallen slightly in the last 24 hours, with a drop of 1.2%.
Bitcoin fell to an intraday low of $66,000 but found support there and returned to $67,000 at the time of writing during Monday morning Asian trading.
Ethereum fell 1.3% on the day, falling back to $3,078 after hitting a weekend high of $3,142. O altcoins were predominantly in the red on Monday morning.