The cryptocurrency markets have experienced a rally over the past few days; however, the momentum appears to be fading as the new week begins, leading to corrections in most digital assets.
With a strong economic environment and anticipated policy adjustments under Donald Trump’s administration, there is a hopeful perspective for both crypto and tech stocks, particularly those connected to artificial intelligence.
Upcoming Economic Events (Nov. 25 to 29)
On Tuesday, the November Consumer Confidence Index will be released, reflecting the degree of confidence consumers have in economic conditions, which influences spending and consequently impacts GDP.
Additionally, the Federal Open Market Committee will meet on Tuesday to disclose the minutes from their latest policy meeting held on Nov. 6-7. During this meeting, the Fed reduced its key interest rate by 25 basis points in response to the continuing decline in inflation observed earlier this month.
Wednesday will feature the Q3 2024 GDP Growth Annualized report, offering an updated view of GDP fluctuations. Economists expect the second estimate to reaffirm the annualized growth rate of 2.8%, marking a slight deceleration from the 3% increase seen in Q2.
The October Core Personal Consumption Expenditures (PCE) report is also anticipated on Wednesday. This report indicates the average monthly spending by consumers and serves as the primary inflation metric for central bank policymakers.
“PCE inflation data will be market moving as odds of a December rate cut have receded,” stated the Kobeissi Letter.
Key Events This Week:
1. CB Consumer Confidence data – Tuesday
2. October New Home Sales data – Tuesday
3. FOMC Meeting Minutes – Tuesday
4. Q3 2024 GDP data – Wednesday
5. October PCE Inflation data – Wednesday
6. US Markets Closed for Thanksgiving – Thursday
A short but…
— The Kobeissi Letter (@KobeissiLetter) November 24, 2024
It’s worth noting that traditional markets in the United States will be closed on Thursday for Thanksgiving, but the crypto market operates continuously without holidays.
Cooling Off in Crypto Markets
The total crypto market capitalization has decreased by 3% from its record high reached over the weekend, dropping to $3.44 trillion during the Monday morning trading session in Asia. Since the US presidential election earlier this month, over a trillion dollars has flowed into the cryptocurrency sector.
Bitcoin has experienced a decline of 2.5% since its all-time high of $99,645 on Nov. 22, briefly dipping below $96,000 on Sunday before rebounding to trade near $98,000 on Monday morning. A correction was anticipated following a 20% gain over the preceding fortnight.
Ethereum faced resistance just above $3,400 once again and has begun to pull back slightly, falling to $3,400 over the weekend.
In contrast, most altcoins are showing losses at this moment after solid gains last week, with Near Protocol (NEAR) being a notable exception, as it has surged 7.6% today, surpassing $7 for the first time since June.
Image Credit: Mahambah / shutterstock
