Will crypto markets continue to rally on this week’s economic data?

Markets rebounded strongly after last week’s Federal Reserve pivot and the premise of injecting more liquidity.

The total crypto capitalization returned to pre-pullback levels, re-closing at $2.5 trillion for the weekend and returning to the middle of its limited channel.

This week’s economic calendar will not be as volatile as last week’s. “After several weeks of non-stop economic data and inflation, markets can digest this week,” commented the Kobeissi Letter.

“There is multiple macro-related news this week, but the impact is limited and, unsurprisingly, the Fed has kept rates on hold in recent months.” said Greeks Live crypto derivatives provider.

economic calendar

On Tuesday, the change in consumer credit for March will be reported, calculating the change in the total amount of outstanding credit granted to natural persons for personal expenses.

Investors and analysts watch this data as the change in consumer credit is strongly correlated with both consumer confidence and spending.

Initial jobless claims data is released on Thursday and is expected to increase slightly from the previous month.

Friday will see the preliminary reading of the Michigan Consumer Sentiment Index for May, a report that provides the results of a monthly survey of consumer confidence levels.

The preliminary May consumer inflation expectations report will also be released on Friday. This University of Michigan survey looks at consumers’ views on long-term inflation and is used as a component of the Fed’s calculations of inflation expectations.

Key events this week:

1. EIA Short-Term Energy Outlook – Tuesday

2. Auction of 10-year notes – Wednesday

3. Initial data on unemployment claims – Thursday

4. MI Consumer Sentiment Data – Friday

5. Total of 8 Fed speaker events this week

6. ~20% of S&P 500 companies report earnings

In…

— Kobeissi Letter (@KobeissiLetter) May 5, 2024

In addition to the economic reports, there will be eight speeches from the Federal Reserve this week, and with the latest inflation and employment data not looking positive, these speeches could cause some volatility.

There are several major earnings reports released this week, but none of them are related to the digital asset markets.

Crypto market outlook

Crypto markets are up 1.7% on the day to reach $2.49 trillion during Monday morning’s Asian trading session.

Weekend volumes were muted, but gains held and bitcoin regained key price levels. The asset is currently trading around $64,000, after hitting an intraday high of $64,500 on Sunday afternoon.

Ethereum prices are up 1.6% to $3,170 at the time of writing. The asset has also returned to its consolidation channel and did not spend much time below $3,000.

Altcoins are also showing marginal gains today. Toncoin (TON), Near Protocol (NEAR), and artificial intelligence tokens Fetch.ai (FET) and Render (RNDR) are doing particularly well.

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