4 Things That Could Affect Crypto Markets Next Week

Crypto markets have rallied over the past few days, however, things are starting to cool down, with most digital assets correcting as this week begins.

The solid economic backdrop, along with expected policy changes under Donald Trump’s administration, support an optimistic outlook for crypto and tech stocks, especially assets associated with artificial intelligence.

Economic events from November 25 to 29

The November Consumer Confidence Index report will be published on Tuesday, which conveys the level of confidence consumers have in economic activity, affecting spending, which has a direct impact on GDP.

The Federal Open Market Committee will meet on Tuesday to release the minutes of its most recent policy meeting on November 6-7. The Fed cut its key interest rate by a quarter of a point in response to the steady fall in inflation a fortnight ago.

On Wednesday, the annualized GDP growth report for Q3 2024 will appear, providing an updated picture of GDP change. Economists expect the second estimate to confirm the annualized growth rate of 2.8%, which is a slight slowdown from the 3% increase in the second quarter.

The core personal consumption expenditures (PCE) report for October is also expected on Wednesday. This data reflects the average amount of money consumers spend each month and is used by central bank policymakers as a leading indicator of inflation.

“The PCE inflation data will move the market as the odds of a December rate cut have receded,” Kobeissi’s Letter commented.

Key events this week:

1. CB Consumer Confidence Data – Tuesday

2. October New home sales data – Tuesday

3. Minutes of the FOMC meeting – Tuesday

4. GDP data for Q3 2024 – Wednesday

5. October PCE Inflation Data – Wednesday

6. US markets closed for Thanksgiving – Thursday

A short but…

— Kobeissi Letter (@KobeissiLetter) November 24, 2024

Traditional markets will be closed in the US on Thursday for the Thanksgiving holiday, crypto does not have a holiday.

Cooling of crypto markets

The total capitalization of the crypto market has fallen 3% from its all-time high over the weekend in a decline to $3.44 trillion during the Asian trading session on Monday morning. More than $1 trillion has flowed into the crypto space since the US presidential election earlier this month.

Bitcoin has fallen 2.5% from its Nov. 22 all-time high of $99,645, dipping below $96,000 briefly on Sunday before recovering to trade around $98,000 on Monday morning. A pullback is expected after gains of 20% over the past two weeks.

Ethereum once again hit resistance above $3,400 and has started to pull back marginally, dropping to $3,400 over the weekend.

Altcoins are mostly in the red right now, after last week’s solid gains. The exception is Near Protocol (NEAR), which is up 7.6% on the day, breaking above $7 for the first time since June.

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