How will this week’s US economic data affect crypto markets?

Crypto markets remained relatively inactive over the weekend, holding on to gains made last week on the back of Ethereum exchange-traded fund approvals in the United States.

More economic data such as consumer confidence and gross domestic product indicators will be released this week.

Economic calendar from May 27 to 31

Monday is Memorial Day in the US, so markets will be closed and low volatility is expected for crypto assets.

Consumer confidence data will be released on Tuesday that improved slightly in May from the previous month with weekly jobless claims and better-than-expected manufacturing and services PMIs last week.

On Thursday, we’ll see the annualized GDP growth report for the first quarter of 2024, which provides a forward estimate and insight into the health of the economy over the previous quarter.

However, the US Bureau of Economic Analysis estimates that the economy has slowed to an annualized growth of 1.5%, slightly below initial estimates.

Key events this week:

1. Memorial Day, markets closed – Monday

2. CB Consumer Confidence Data – Tuesday

3. GDP data for Q1 2024 – Thursday

4. April PCE Inflation Data – Friday

5. Chicago PMI data – Friday

6. Total 10 Fed speaker events this week

A short but intense week.

— Kobeissi Letter (@KobeissiLetter) May 26, 2024

April’s core personal consumption expenditures (PCE) report, which shows the average amount of money consumers spend each month, will be released on Friday. Federal Reserve FOMC policymakers watch this data closely as their leading indicator of inflation and will use it to estimate whether inflation is falling.

A related report of personal income and expenses for April will also be released on Friday. This reflects the total value of personal income in America, plus 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 global economy and affect the Fed’s monetary policy decisions.

There will also be a total of ten speeches by Federal Reserve chiefs this week.

Wholesale giant Costco, software firm Salesforce and IT company HP are among the earnings reports to watch this week.

Crypto market outlook

Presidential candidate Donald Trump gave the crypto industry a big potential boost over the weekend when he said he would support its future in America if elected.

This is surreal.

The leading candidate for the presidency explicitly says that he will make the United States the leader in bitcoin and crypto, while supporting the right to self-storage.

All the critics were wrong. The government will not ban it, it is accepting it.pic.twitter.com/XfvPu6C89m

— Pomp 🌪 (@APompliano) May 26, 2024

However, it wasn’t enough to move the markets, which hovered around the $2.7 trillion market cap level over the weekend.

Monday morning’s Asian trading session has been muted. Bitcoin has fallen slightly and is just below $69,000 at the time of writing.

Ethereum prices fared better, gaining 4% on the day to hit $3,900 following ETF approvals, while altcoins remained largely mixed.

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