3 Factors That May Boost Crypto Markets This Week

The cryptocurrency market capitalization has exceeded $2.5 trillion for the first time since late July, driven by Bitcoin’s approach to $70,000. However, will the upcoming economic reports boost its trajectory further?

Moreover, with the United States presidential election occurring in just two weeks, the Kobeissi Letter noted that “this should start to introduce more volatility.”

Economic Events Oct. 21 to 25

This Wednesday will bring the release of existing home sales data, shedding light on the housing market’s status, which significantly influences US economic activity but has minimal effects on cryptocurrency markets.

On Thursday, additional home sales data and initial jobless claims will be unveiled. The jobless claims report reflects the health of the labor market and relates to broader economic activity.

Friday will see the release of September’s durable goods orders data, which measures the total dollar amount of orders placed with manufacturers for durable goods like vehicles and electronics. This report reflects production activity and demand for large expenditures, serving as an indicator of consumer sentiment.

Also released on Friday will be October’s Michigan Consumer Sentiment Index and Consumer Inflation Expectations reports. These reports provide insights based on a monthly survey focused on consumer confidence levels and perceptions of long-term inflation.

Key Events This Week:

1. Existing Home Sales data – Wednesday

2. Initial Jobless Claims data – Thursday

3. New Home Sales data – Thursday

4. September Durable Goods Orders data – Friday

5. MI Consumer Sentiment data – Friday

6. ~15% of S&P 500 companies report earnings…

— The Kobeissi Letter (@KobeissiLetter) October 20, 2024

Furthermore, approximately 15% of S&P 500 companies are set to report their earnings this week. Noteworthy tech giants like Microsoft, IBM, Amazon, and Tesla are among them.

The tech sector concluded last week on an upswing, which may carry over into this week, potentially influencing the digital asset markets as well.

Crypto Market Outlook

The total market capitalization surpassed $2.5 trillion during early trading in Asia on Monday morning, marking the highest level in nearly three months.

Bitcoin has been the main catalyst, propelling itself to $69,430 during Monday’s early session. Nevertheless, it fell short of the significant $70,000 mark, retracting to $68,900 at the time of this writing.

Ethereum also witnessed a rare uptick, outperforming Bitcoin in terms of daily gains, with a rise of 3.5%. ETH reached $2,760, its highest point since August 25, before experiencing a slight pullback a few hours later.

The altcoin market also benefited from this upward momentum; Solana (SOL) climbed to $170 with a 6.6% gain, Cardano saw a 5% increase to $0.368, and Chainlink (LINK) surged above $12 after a similar rise.