3 important things to watch out for in the coming week in Crypto

Crypto markets have started to pull back again after signs of recovery after the big drop a week ago.

In addition, it will be a busy week on the US economic calendar as inflation data is released, which could influence the Federal Reserve’s monetary policy.

These reports tend to have a big impact on the stock and crypto markets, so here’s what to expect.

Economic calendar from August 12 to 16

Panic gripped crypto and financial markets last week as the deactivation of the Japanese yen added to trading volatility. This week will provide investors with more information on how quickly and how deeply the US central bank will cut interest rates.

The PPI (producer price index) report for July will be published on Tuesday. This reflects input prices for producers and manufacturers, measuring the costs of producing consumer goods and directly affecting retail prices.

This report is a pre-indicator of inflationary pressures and makes it a leading indicator of the following month’s CPI (Consumer Price Index). The July CPI report is due on Wednesday, and it provides a much broader view of inflationary pressures.

Analysts expect overall consumer prices, including the price of food and energy, to post a 3% annual gain, unchanged from the June report. As a result, inflation is expected to rise 0.2% month-on-month after falling 0.1% in June.

Key events this week:

1. July PPI inflation data – Tuesday

2. CPI inflation data for July – Wednesday

3. July retail sales data – Thursday

4. Philly Fed Manufacturing Index – Thursday

5. Data on housing starts for July – Friday

6. 3 Fed speaker events and earnings season continues

We…

— Kobeissi Letter (@KobeissiLetter) August 11, 2024

According to Sarah House, senior economist at Wells Fargo, this week’s data should suggest that inflationary pressures are cooling.

“The July CPI report is likely to bolster the case that inflation is easing even if it has not yet returned to the Fed’s target.”

July retail sales data will be released on Thursday, which will indicate whether the US economy and consumer spending is slowing.

“Overall, if the (retail sales and inflation) data comes in as we expect, we look for the market to have fewer cuts this year and reduce the likelihood of a big cut in September,” said Bank of America. Michael Gapen, in a memo last week.

Crypto market outlook

Crypto markets cooled off during Monday morning’s Asian trading session with a 3.5% drop on the day, bringing total market capitalization down to $2.14 trillion.

Bitcoin fell sharply, down 4.4% over the past 24 hours, from just over $61,500 to $58,500 on Monday morning.

Ethereum followed suit with a 4% drop to $2,530 at the time of writing. As usual, altcoins suffer the biggest losses, most of them returning to bear market levels.

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