How Will This Week’s US Economic Data Impact Crypto Markets?
Crypto markets have remained relatively inactive over the weekend, maintaining gains made last week in the wake of spot Ethereum exchange-traded fund approvals in the United States.
This week will see the release of more economic data such as consumer confidence and gross domestic product indicators.
Economic Calendar May 27-31
Monday is Memorial Day in the U.S., so markets will be closed, and low volatility is expected for crypto assets.
Tuesday will see the release of consumer confidence data which has improved slightly in May from the previous month with better-than-expected weekly jobless claims and manufacturing and services PMIs last week.
Thursday, we will see the Q1 2024 GDP Growth Annualized report, which provides an advanced estimate and insight into the economy’s health from the previous quarter.
However, the U.S. Bureau of Economic Analysis estimates that the economy has slowed to an annualized growth of 1.5%, slightly lower than initial estimates.
Key Events This Week:
1. Memorial Day, Markets Closed – Monday
2. CB Consumer Confidence data – Tuesday
3. Q1 2024 GDP data – Thursday
4. April PCE Inflation data – Friday
5. Chicago PMI data – Friday
6. Total of 10 Fed speaker events this week
Short but busy week ahead.
— The Kobeissi Letter (@KobeissiLetter) May 26, 2024
On Friday will be released April’s Core Personal Consumption Expenditures (PCE) report which indicates the average amount of money consumers spend monthly. Federal Reserve FOMC policymakers keenly eye this data as their primary inflation gauge and will use it to estimate whether inflation is coming down.
A related Personal Income and Personal Spending report for April is also due on Friday. This reflects the total value of personal income in America in addition to the value of purchases of all types of goods and services by consumers.
Consumer spending is a big driver of economic growth, so these reports can provide data on the overall economy and impact Fed monetary policy decisions.
There will also be a total of ten speeches from Federal Reserve bosses this week.
Wholesale giant Costco, software firm Salesforce, and computer firm HP are among the earnings reports to keep an eye on this week.
Crypto Market Outlook
Presidential candidate Donald Trump gave the crypto industry a huge potential boost over the weekend when he said he would support its future in America if elected.
This is surreal.
The leading Presidential candidate is explicitly saying he will make America the leader in bitcoin & crypto, while supporting the right to self-custody.
All the critics were wrong. The government won’t ban it, they’re embracing it.pic.twitter.com/XfvPu6C89m
— Pomp
(@APompliano) May 26, 2024
However, it was not enough to move markets, which hovered around the $2.7 trillion market cap level over the weekend.
The Monday morning Asian trading session has been muted. Bitcoin has slipped slightly and sits just below $69,000 at the time of writing.
Ethereum prices were doing better, with a gain of 4% on the day to reach $3,900 after the ETF approvals, while the altcoins remained largely mixed.
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