4 Factors Influencing Crypto Market Prices This Week

The cryptocurrency markets have maintained their momentum from last week, buoyed by the Federal Reserve’s decision to cut interest rates by 0.5% over the weekend.

This week will feature several important reports on consumer confidence, gross domestic product (GDP), and updated inflation figures.

“Anticipate heightened volatility and more significant market swings as the focus turns to the upcoming Fed meeting,” noted the Kobeissi Letter on Sept. 22.

Economic Events from Sept. 23 to 27

On Monday, the S&P Global Services PMI (Purchasing Managers Index) report will be released, shedding light on the business climate within the services sector, which is a considerable contributor to the GDP. This will be followed by consumer confidence reports on Tuesday, showcasing insights into the overall economic sentiment.

On Thursday, the regular weekly job data will be published alongside durable goods orders, a revision of GDP figures, and pending home sales.

Finally, Friday will feature the personal consumption expenditures (PCE) price index report, which is a crucial measure of inflation that central bank officials consider in their policy decisions.

Key Events This Week:

1. S&P Global Services PMI data – Monday

2. CB Consumer Confidence data – Tuesday

3. August New Home Sales data – Wednesday

4. August Durable Goods Orders data – Thursday

5. Q2 2024 Final GDP Reading – Thursday

6. August PCE Inflation data – Friday…

— The Kobeissi Letter (@KobeissiLetter) September 22, 2024

Attention is focused on the Fed’s upcoming meeting on November 7, which may result in another reduction in rates. The CME Fed Watch tool currently shows an equal 50:50 chance of either a 25 basis point or another 50-point decrease.

In Asia, stock markets traded within a tight range on Monday morning as investors assessed various data points that raise concerns about the state of China’s economy, as reported by Bloomberg. “The situation in China is deteriorating rapidly,” said Tony Sycamore, an analyst at IG in Sydney, to the publication.

The yen in Japan weakened after the Bank of Japan signaled on Friday that there is no immediate urgency to increase interest rates again.

Crypto Market Outlook

Over the past 24 hours, the crypto markets have shown relative stability, with total capitalization standing at $2.31 trillion.

Approximately $200 billion has flowed back into the cryptocurrency market in the past week following the Fed’s substantial interest rate cut, which is seen as positive for risk assets.

Bitcoin remained around the $63,000 mark for much of the weekend but began to rally, nearly reaching $65,000 during the Monday morning trading session in Asia. The asset has risen by 9% compared to the same time last week.

Ethereum also saw upward movement after weeks of uncertainty, crossing the $2,600 mark in early Asian trading, resulting in a weekly increase of 14.5%.

Overall, the altcoins displayed mixed performance; however, Binance Coin (BNB), Litecoin (LTC), Sui (SUI), and Bittensor (TAO) showed slightly better results.