This Week’s Economic Events May Impact Crypto Markets
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As another busy week unfolds on the U.S. economic calendar and crypto markets continue their consolidation, will volatility rise in the coming days?
The key events in the economic week ahead include the Federal Reserve meeting minutes and a significant earnings report from semiconductor giant Nvidia.
Additionally, reports on global manufacturing and services indexes, as well as consumer inflation expectations, may have some influence on the markets.
Economic Events Scheduled for May 20-24
The previous week witnessed the U.S. Dow Jones Industrial Average (DJIA) surpassing the 40,000 milestone for the first time. This surge in stocks was propelled by positive figures in the CPI report, sparking discussions that the US economy might be slowing down and prompting speculation about potential rate cuts by the central bank in the coming months.
This week, attention turns to the release of the minutes from the Federal Reserve FOMC May meeting on Wednesday. These minutes could provide further clarity on future monetary policy decisions and a potential timeline for rate cuts.
Additionally, on Thursday, the preliminary report for May’s Global Manufacturing PMI will be unveiled, offering insights into business conditions within the manufacturing sector.
On May 23, there’s also a PMI report scheduled for the services sector. This report holds significant importance as the services sector contributes to over 70% of the total US GDP, making it a crucial leading indicator for economic conditions.
Friday will feature May’s Michigan Consumer Sentiment Index, which gauges inflation expectations. These reports reflect the outcomes of a monthly survey tracking consumer confidence levels across the nation.
Wednesday also marks the release of a highly anticipated quarterly revenue report from semiconductor giant Nvidia. This report has the potential to keep tech stocks and the crypto market buoyant.
Asian markets experienced an uptick on Monday, May 20, following gains on Wall Street. Investors in the region are eagerly anticipating their own sets of economic data this week, particularly focusing on Japan for inflation data and South Korea for a rates decision.
Influence on the Crypto Market
With no significant economic events expected this week, it’s unlikely that the crypto markets will experience substantial impact, and volatility is expected to remain subdued.
Last week saw a positive trend in crypto markets, with total capitalization surpassing $2.5 trillion and maintaining gains over the weekend. However, there has been a slight dip in the past 24 hours, with a 1.2% decline.
Bitcoin experienced an intraday low of $66,000 but found support at that level, bouncing back to $67,000 during Monday morning’s Asian trading session.
Ethereum has dropped by 1.3% to $3,078 after reaching a weekend high of $3,142. Most altcoins were trading in the red during Monday morning.
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