The upcoming week in the United States is packed with key economic data releases that could have a significant impact on the direction of crypto markets. New home sales figures are set to be released on Tuesday, providing insights into the overall economy and consumer confidence. Alongside this, April’s S&P Global Manufacturing PMI and S&P Global Services PMI preliminary readings will shed light on business conditions in the manufacturing and services sectors, which are crucial components of the nation’s GDP.
On Thursday, the Q1 GDP Growth Annualized preliminary estimate will be unveiled, offering a first look at the economy’s performance in the past quarter. The market anticipates a slight increase to 2.9%, according to the Atlanta Fed. Additionally, the Core Personal Consumption Expenditures (PCE) report, a key gauge for inflation, is scheduled for release on Friday. The Fed’s target of 2% inflation may be challenged as the March figure is expected to remain at 2.8%. Any deviation from these estimates could have a significant impact on market sentiment.
This week will also see around 20% of S&P 500 companies reporting their quarterly earnings, with major players like Microsoft and Alphabet (Google) in the spotlight. These reports will provide valuable insights into the overall health of the economy and could influence investment decisions in both traditional and crypto markets.
Over the weekend, the crypto markets saw signs of recovery, with the total market cap returning to and holding the $2.5 trillion level. Bitcoin led the charge following its fourth halving event, pushing its price above $66,000. Ethereum also saw gains, reclaiming $3,200, while altcoins like LINK, NEAR, and DOT experienced impressive price movements.
Market analysts anticipate increased volatility in the coming days, especially if the PCE figures deviate significantly from expectations. With inflation remaining a key concern for Federal Reserve policymakers, any surprises in the economic data releases could lead to sharp movements in both traditional and crypto markets. Traders and investors should closely monitor these developments to make informed decisions amid the evolving economic landscape.
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