As the crypto markets display signs of recovery over the weekend, the focus shifts towards a busy economic calendar in the United States. The Federal Reserve’s key inflation metric takes the spotlight this week, potentially influencing monetary policy moving forward. The impact of this metric on market sentiment cannot be understated.
New Home Sales Figures
On Tuesday, new home sales figures will be released, providing a broader perspective on the overall economy and confidence. While these figures may not directly correlate with crypto markets, they are crucial indicators for understanding the economic landscape.
S&P Global Manufacturing and Services PMI
The preliminary readings of April’s S&P Global Manufacturing PMI and S&P Global Services PMI will also be disclosed on Tuesday. These reports offer insights into business conditions in the manufacturing and services sectors, which are vital components of the nation’s GDP.
Thursday will see the release of the Q1 GDP Growth Annualized preliminary estimate, offering an initial glimpse into the economy’s health in the previous quarter. The Atlanta Fed predicts a slight increase to 2.9% for this period, setting the stage for potential market reactions.
Core Personal Consumption Expenditures (PCE) Report
Friday will bring forth the Core Personal Consumption Expenditures (PCE) report, reflecting consumer spending during the period. This report serves as a crucial gauge for inflation for the central bank, with the Bureau of Economic Analysis estimating the March figure to remain above the Fed’s 2% target at 2.8%. Any deviations from these expectations could have a significant impact on market sentiment.
With around 20% of S&P 500 companies reporting their quarterly earnings this week, including tech giants Microsoft and Alphabet (Google), market volatility is expected to increase. The crypto market cap has surged back to and maintained the $2.5 trillion level, with Bitcoin leading the charge post its fourth halving event. However, Bitcoin’s price has been relatively stagnant since February’s end.
Ethereum has managed to reclaim $3,200, with a current price of $3,225, after a minor retreat. Additionally, altcoins like LINK, NEAR, and DOT have shown impressive gains this Monday morning. Nevertheless, the market remains poised for further volatility, especially with the looming PCE figures expected later this week.
While the crypto markets may be on a path to recovery, the upcoming economic events in the United States can potentially trigger a shift in market sentiment. It is crucial for investors and traders to closely monitor these key indicators and be prepared for any unforeseen market reactions.