Markets
Will this week’s US GDP data cause crypto markets to grow further?
This week, investors are focused on key reports that could provide insight into the health and outlook of the US economy.
Most anticipated is the Personal Consumption Expenditures (PCE) report, which serves as the Federal Reserve’s preferred inflation gauge.
There are also reports on consumer sentiment data and inflation expectations that could rattle markets.
Economic Events June 24th to 28th
Data on consumer confidence will be released on Tuesday, offering insight into sentiment and the state of economic recovery. However, the first of the big reports will be released on Thursday with Q1 2024 GDP Growth Annualized (Final Estimate).
The second estimate showed that economic growth slowed to 1.3% annualized, down from 3.4% in the fourth quarter, and the final estimate is expected to confirm these figures.
“All eyes are on the GDP data, as recent impressions suggest that we may be witnessing stagflation”, commented the macroeconomics outlet The Kobeissi Letter in a publication on X on June 24.
Friday, June 28th will be a busy day. The May Core PCE will be released and investors and policymakers will be keeping an eye on it. Following lower than expected May CPI numbers, this report will be watched closely for continued disinflationary trends.
Personal income and spending reports for May will also be released on Friday. This data reflects the total personal income and purchases of consumers in America, providing crucial information about overall economic health and potentially influencing central bank decisions.
Finally, the Michigan Consumer Sentiment Index and June Consumer Inflation Expectations will also be released on Friday. These reports show consumer confidence levels and long-term inflation expectations, which impact consumer spending and are also considered in the Fed’s inflation expectation calculations.
There are also a total of 8 Fed speaker events this week.
Crypto Market Outlook
With such a data-heavy week on the economic calendar, there could be more volatility for risk assets like cryptocurrencies.
Total capitalization fell another 5% in the last 24 hours, reaching a six-week low of $2.35 trillion. Markets are down 11% so far this month, with about $300 billion leaving the market.
Bitcoin fell 4% in one fall towards $61,000 but has managed to hold above, trading at $61,300 at the time of writing.
Ethereum was in greater painfalling to a six-week low of $3,310 during Asian trading on Monday.
Altcoins continued to bleed with bigger losses for Solana (SOL), Dogecoin (DOGE), Shiba Inu (SHIB) and Avalanche (AVAX), which fell to its lowest level this year on the weekend.