4 Things That Could Influence Crypto Markets This Week

The crypto market capitalization peaked above $3.6 trillion over the weekend as altcoins outperformed their big brother Bitcoin.

This week’s economic data focuses primarily on employment and jobs, but there are also some manufacturing PMI reports in the mix.

This will be the last week of labor market data before the December 18 Federal Reserve meeting, Kobeissi Letter reported, adding: “It’s a huge week for the labor market.”

Economic events from December 2 to 6

Stock and crypto markets were buoyed last week as investors found reassurance in Donald Trump’s pick for Treasury Secretary, picking seasoned hedge fund executive Scott Bessent.

However, the Fed’s preferred measure of inflation, Core PCE, came in at 2.8%, prompting some concerns about rising inflation and a sharp turnaround from the US central bank.

A strong economy, as seen through last week’s GDP data, and persistently high inflation have raised questions among investors about whether another rate cut is expected this year.

On Monday, the November ISM Manufacturing PMI report reflecting business conditions in the US manufacturing sector will be released. It provides a leading indicator for assessing the state of the economy and anticipating changing trends.

Tuesday has the latest job postings, while Wednesday will show nonfarm payrolls for November. Wednesday also has the ISM Services PMI for November, which shows business conditions in the US services sector. PMIs are leading indicators of changes in economic conditions.

Friday has more employment data, with nonfarm payrolls and unemployment rate reports. These reports are two of the most important economic indicators for policymakers after changes in the number of positions, as they are strongly associated with overall economic health.

Friday also has preliminary readings for the Michigan Consumer Sentiment Index and consumer inflation expectations. These reports provide the results of a monthly survey of consumer confidence levels and views on long-term inflation.

Key events this week:

1. November ISM Manufacturing PMI data – Monday

2. October Job offer data JOLTS – Tuesday

3. November Non-agricultural employment data ADP – Wednesday

4. Fed Chairman Powell speaks on Wednesday

5. Initial data on unemployment claims – Thursday

6. Employment report for November -…

— Kobeissi Letter (@KobeissiLetter) December 1, 2024

There are several Fed speeches this week, including Chairman Jerome Powell on Thursday, December 5th.

Rise of the crypto market

Crypto markets continued to gain over the weekend, with total market capitalization hitting a record high of $3.65 trillion in early trading in Asia on Monday morning.

Bitcoin rallied back to $98,000 before retracing, but Ethereum was the driving force, hitting a six-month high of $3,750 on December 2.

XRP also exploded more than 30% to hit a six-year high of $2.48 on Monday morning. Dogecoin (DOGE), Cardano (ADA), Avalanche (AVAX), Shiba Inu (SHIB), and Stellar (XLM) were also seeing solid gains.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

LIMITED OFFER for CryptoPotato readers on Bybit – Use this link to register and open a FREE $500 position with any currency!