Following the Federal Reserve’s shift last week and the expectation of more liquidity injection, markets have bounced back strongly.
The total crypto market capitalization has returned to pre-pullback levels, hitting $2.5 trillion again over the weekend and returning to the middle of its range-bound channel.
This week’s economic calendar is expected to be less volatile compared to last week. The Kobeissi Letter noted, “After weeks of continuous economic and inflation data, markets have some time to digest this week.”
Economic Calendar
On Tuesday, the Consumer Credit Change for March will be reported, reflecting the variation in the total amount of credit extended to individuals for personal spending.
Investors and analysts closely watch this data as changes in consumer credit strongly correlate with consumer confidence and spending habits.
Thursday will see the release of Initial Jobless Claims data, expected to show a slight increase from the previous month.
Friday will mark the preliminary release of May’s Michigan Consumer Sentiment Index, providing insights from a monthly consumer confidence survey.
Additionally, Friday will bring the preliminary Consumer Inflation Expectations report for May, derived from the University of Michigan survey, which assesses consumer perspectives on long-term inflation.
Key Events This Week:
1. EIA Short-Term Energy Outlook – Tuesday
2. 10-Year Note Auction – Wednesday
3. Initial Jobless Claims data – 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
A…
— The Kobeissi Letter (@KobeissiLetter) May 5, 2024
Aside from economic reports, there will be eight Federal Reserve speeches this week. Given the recent unfavorable inflation and job data, these speeches could introduce some volatility.
Although there are significant earnings reports scheduled this week, none of them are directly linked to digital asset markets.
Crypto Market Overview
During Monday’s Asian trading session, crypto markets have increased by 1.7% to hit $2.49 trillion.
Despite relatively subdued weekend trading volumes, gains have been sustained, with bitcoin reclaiming crucial price levels. Currently, bitcoin is trading around $64,000, reaching an intraday high of $64,500 late on Sunday.
Ethereum’s price has risen by 1.6% to touch $3,170. The asset has returned to its consolidation channel and spent minimal time below $3,000.
Other altcoins are also experiencing slight gains today. Toncoin (TON), Near Protocol (NEAR), and AI tokens like Fetch.ai (FET) and Render (RNDR) are performing well.
Image Credit: Mahambah / shutterstock
