tl;dr
This week, the crypto market faces several key economic events that could impact Bitcoin's performance. Market participants are closely watching US macroeconomic data, including S&P Flash Services and Manufacturing PMI data, retail sales data, the Federal Reserve's interest rate decision, Q3 2024 GD...
This week, the crypto market faces several key economic events that could impact Bitcoin's performance. Market participants are closely watching US macroeconomic data, including S&P Flash Services and Manufacturing PMI data, retail sales data, the Federal Reserve's interest rate decision, Q3 2024 GDP data, and November Personal Consumption Expenditure (PCE) inflation data. The outcomes of these events could influence investor sentiment and market volatility, with potential implications for cryptocurrency prices.
At the time of writing, Bitcoin was trading at $104,991, showing a modest 2% rise since the beginning of the week.
This week is packed with key economic events that could significantly influence the crypto market. These macroeconomic data come as market participants gear up for the run into the year-end holiday. Meanwhile, Bitcoin (BTC) continues to hold above the $100,000 mark, with traders and investors anticipating further upside in the supposed Christmas rally.
US MACROECONOMIC DATA THAT COULD INFLUENCE BITCOIN SENTIMENT THIS WEEK
Crypto market participants, traders, and investors alike will be watching the following US economic data this week for price implications.
S&P FLASH SERVICES AND MANUFACTURING PMI DATA
The week begins with the release of the S&P Flash Services and Manufacturing Purchasing Managers’ Indices (PMI) on Monday. PMI data, derived from monthly business surveys, serve as key indicators of economic health, often used to predict market trends and assess business conditions. A PMI above 50 indicates economic expansion, while a reading below 50 signals contraction. If the data shows strength in the services and manufacturing sectors, it may bolster overall economic confidence. This optimism could increase investor appetite for riskier assets, including cryptocurrencies. However, economists remain cautious as concerns about the broader economic outlook persist.
RETAIL SALES DATA
Another US economic data that will interest crypto market participants this week is the retail sales data. After the 0.4% reading in October, economists forecast a November reading of 0.6%. Retail sales data can also influence inflation expectations. If retail sales are strong, it could signal increasing demand and potentially higher inflation down the line. Cryptocurrencies like Bitcoin are often viewed as a hedge against inflation, so any signs of rising inflation could drive investors toward cryptocurrencies.
FED INTEREST RATE DECISION (FOMC)
However, the height of this week’s US macroeconomic data will be the Federal Reserve’s (Fed) interest rate decision on Wednesday. Crypto markets brace for market swings amid anticipation of whether the Fed will hike or cut rates. According to the CME FedWatch Tool, markets are anticipating a 25 basis points (0.25% bps) rate cut on Wednesday.
Q3 2024 GDP DATA
On Thursday, the US Bureau of Economic Analysis (BEA) will release the second revision of third quarter (Q3) GDP data. This data will offer insight into the health of the economy as we approach the end of the year. This means that the US GDP grew at an annual rate of 2.8% in Q3 2024, and markets will watch to see whether the trend continues.
PCE INFLATION DATA
To close out the week, the November Personal Consumption Expenditure (PCE) inflation data will be released on Friday. It is a measure of consumer spending and includes all goods and services bought by US households. According to The Kobeissi Letter, the one-month annualized core PCE inflation is now at 3.5% as traders await November’s data at the end of the week. Based on the above, the week may be wild, with possible heightened volatility around these events. At the time of writing, BTC was trading for $104,991, a modest 2% rise since Monday’s session opened.