According to CryptoPotato, the cryptocurrency market has demonstrated signs of recovery over the weekend. However, the upcoming week's economic events in the United States could potentially reignite bearish momentum. The Federal Reserve's primary inflation metric, which may influence future monetary policy, will be closely watched. The Kobeissi Letter, a macroeconomics outlet, has outlined the key events for the week, including the release of March New Home Sales data, Durable Goods Orders data, US Q1 2024 GDP data, March Pending Home Sales data, and March PCE Inflation data. Additionally, approximately 20% of S&P 500 companies are expected to report their earnings this week.
Tuesday will see the release of new home sales figures, which provide a broader view of the overall economy and confidence, although they are not directly related to the crypto markets. Preliminary readings for April's S&P Global Manufacturing PMI and S&P Global Services PMI will also be released on Tuesday. These reports provide insights into the business conditions in the manufacturing and services sectors, which together make up the majority of the nation's GDP. The Q1 GDP Growth Annualized preliminary estimate will be released on Thursday, offering an initial look at the health of the economy in the previous quarter. The Atlanta Fed anticipates a slight increase to 2.9% for the period.
The Core Personal Consumption Expenditures (PCE) report, a primary measure of inflation for the central bank, is due on Friday. The Bureau of Economic Analysis (BEA) expects the March figure to remain at 2.8%, which is above the Fed's 2% target. The Michigan Consumer Sentiment Index and Consumer Inflation Expectations reports for March are also due on Friday. With inflation persistently high, Federal Reserve policymakers are at a crossroads, and any deviation from expectations could significantly impact market sentiment.
The crypto market cap returned to and maintained the $2.5 trillion level over the weekend, led by Bitcoin following its fourth halving event. Bitcoin was trading above $66,000 at the time of writing, after dipping below $65,000 during the Monday morning Asian trading session. Ethereum recovered to reclaim $3,200 and was trading at $3,225 at the time of writing after a minor pullback. Altcoins were also predominantly in the green on Monday morning, with notable gains from LINK, NEAR, and DOT. More market volatility is expected if the PCE figures significantly deviate from expectations later this week.