According to CryptoPotato, the cryptocurrency markets experienced significant growth over the weekend, with over $100 billion added to the total market capitalization. This week’s economic events, although not as influential as the previous week’s key inflation reports, could still impact the markets. The primary market catalyst appears to be shifting towards the earnings season.
Last week’s Consumer Price Index (CPI) report indicated the first month-on-month decline in inflation in four years, leading to a positive market reaction. On Tuesday, June’s retail sales data will be released, providing insights into consumer spending on various goods and the overall economic health. Industrial production reports are scheduled for Wednesday, but they are not expected to significantly impact the crypto markets. Additionally, home sales and manufacturing data reports are due this week, though they are also unlikely to affect high-risk asset markets.
Key events to watch this week include Federal Reserve Chair Jerome Powell’s speech on Monday, June retail sales data on Tuesday, June building permits data on Wednesday, and the Philly Fed manufacturing data on Thursday. There are a total of 11 Federal Reserve speaker events this week, and large banks are set to report their Q2 2024 earnings. The Kobeissi Letter noted that the earnings season would lead into the July Fed meeting, bringing back market volatility. Powell’s comments are closely monitored by investors for any indications of shifts in monetary policy. His testimony before Congress last week boosted investor sentiment, leading to increased bets on interest rate cuts, with the first expected in September.
The 2024 Q2 earnings season is intensifying, with several reports from major banks such as Goldman Sachs, Bank of America, and Morgan Stanley expected this week.
In the crypto market, total capitalization reached $2.4 trillion for the first time in two weeks. Despite this, the market has been trending downward since early June, and it remains uncertain whether this trend has reversed. Bitcoin saw a 4.7% rally over the past 24 hours, reaching $63,000 in Monday morning trading in Asia. The asset has recovered 16% since its correction low on July 5. Ethereum also hit a two-week high of $3,360, while altcoins like Solana (SOL), Chainlink (LINK), and Near Protocol (NEAR) gained over 5% on the day.
