3 Things That Could Affect Crypto Markets This Week

Crypto markets held on to gains made at the end of last week over the weekend, and the momentum could continue over the next few days.

The first few days of the year have seen a small Santa rally for stocks and crypto markets, with around $280 billion flowing into digital asset markets.

Key employment figures will be released this week along with consumer sentiment reports.

“Labor market data is in the spotlight ahead of the January 29 Fed meeting,” commented the Kobeissi Letter.

Economic events from January 6 to 10

The S&P Global Services PMI (Purchasing Managers’ Index) will be released on Monday, while the ISM (Institute for Supply Management) Services PMI is on Tuesday. These reports show business conditions in the service sector and are leading economic indicators used by economists and analysts.

Next, the focus shifts to labor market data with the November JOLTS Job Openings report on Tuesday and the December ADP Non-Farm Employment data on Wednesday.

December’s nonfarm payrolls and unemployment reports are due Friday, and they report the number of new jobs created in the previous month, along with the percentage of people actively looking for work.

Both of these reports are important economic indicators because they track the change in the number of positions that are strongly associated with the overall health of the economy.

Key events this week:

1. S&P Global Services PMI data – Monday

2. November JOLTS Job Openings – Tuesday

3. December Non-agricultural employment data ADP – Wednesday

4. Fed meeting minutes – Wednesday

5. Work report for December – Friday

6. Total of 8 Fed speaker events

Get ready for a…

— Kobeissi Letter (@KobeissiLetter) January 5, 2025

There are also preliminary readings on Friday for the Michigan Consumer Sentiment Index and consumer inflation expectations. These data reveal the results of a monthly survey of consumer confidence levels and views on long-term inflation in the US.

Additionally, Q4 2024 earnings season will begin in earnest in mid-January.

The Kobeissi Letter also warned that “the implications of China’s real estate collapse will extend far beyond real estate in China” before adding: “As we head into 2025, we are positioning ourselves for to more volatility in the market.”

Crypto market outlook

The crypto market cap has remained flat over the past 24 hours and was $3.68 trillion at the time of writing.

Bitcoin’s momentum rose steadily, with the asset hitting a ten-day high, surpassing $99,000 during early trading in Asia on Monday morning. The asset has gained around 7.5% over the past seven days and is on track to regain the psychological $100,000 level soon.

#BTC

The quarterly tests after the breakout and continuation of the trend have been confirmed$BTC #Crypto #Bitcoin https://t.co/T5fYyyybjH pic.twitter.com/geXSv4SYue

— Rekt Capital (@rektcapital) January 5, 2025

Ethereum has mirrored the action with a similar weekly gain, hitting $3,670 on January 6, its highest price since December 19.

Most altcoins were flat on the day, having held on to weekend gains, and the momentum looks set to continue this week.

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