4 things that can affect crypto market prices this week

Crypto markets have held on to last week’s gains over the weekend following a boost from the Federal Reserve’s 0.5% interest rate cut.

This week there are several reports on consumer sentiment, gross domestic product and more inflation data.

“Expect more volatility and larger swings as markets shift focus to the Fed’s next meeting,” commented Kobeissi Letter on September 22.

Economic events from September 23 to 27

On Monday, the S&P Global Services PMI (Purchasing Managers’ Index) report will be released, which captures business conditions in the services sector that contributes significantly to total GDP. This is followed by Tuesday’s consumer confidence reports, which also reflect conditions and sentiment in the broader economy.

Regularly scheduled weekly employment data will be available on Thursday, along with durable goods orders, a revision of gross domestic product (GDP) and pending home sales.

On Friday comes the report of the Personal Consumption Expenditure (PCE) price index, which is one of the key inflation indicators used by central bank policymakers in decision-making.

Key events this week:

1. S&P Global Services PMI data – Monday

2. CB Consumer Confidence Data – Tuesday

3. New home sales data for August – Wednesday

4. August durable goods orders data – Thursday

5. Final reading of GDP 2Q 2024 – Thursday

6. August PCE inflation data – Friday…

— Kobeissi Letter (@KobeissiLetter) September 22, 2024

All eyes are on the Fed’s next meeting on November 7, which could see another rate cut. The CME Fed Watch tool currently has a 50:50 split probability of a 25 basis point or another 50 point cut.

In Asia, stocks traded in a narrow range on Monday morning as investors weighed a series of data that reinforced concerns about the health of China’s economy, Bloomberg reported. “Things in China are going from bad to worse,” Tony Sycamore, an IG analyst in Sydney, told the outlet.

In Japan, the yen weakened after the Bank of Japan signaled on Friday that policymakers are in no rush to raise interest rates again.

Crypto market outlook

Crypto markets have remained relatively stable over the past 24 hours, with a total market capitalization of $2.31 trillion.

About $200 billion has flowed back into the asset class over the past seven days after the Fed’s biggest rate cut, which was bullish on risk assets.

Bitcoin hovered around the $63,000 level for most of the weekend, but started to climb higher, reaching $65,000 during Monday morning’s Asian trading session. The asset has gained 9% since the same time last week.

Ethereum also moved after weeks of FUD that topped $2,600 in early trade in Asia, culminating in a weekly gain of 14.5%.

Altcoins were mixed overall, but Binance Coin (BNB), Litecoin (LTC), Sui (SUI), and Bittensor (TAO) performed slightly better.

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