Three things that could impact the cryptocurrency market this week

The cryptocurrency market surged over the weekend, increasing its market capitalization by more than $100 billion.

This week's economic events calendar is less influential than last week's, which included a major inflation report, but could still have an impact.

As the major market catalysts appear to be shifting towards earnings season, here are a few things to watch in the coming week.

Economic Calendar July 15-19

Markets reacted favorably to last week's Consumer Price Index (CPI) report, which showed inflation declining month-on-month for the first time in four years.

On Tuesday, June retail sales data will be released in a report that provides information on how much consumers spent on a range of durable and nondurable goods, which is used to gauge consumer spending habits and inflationary pressures, as well as the overall health of the economy.

The U.S. Industrial Production Report is due to be released on Wednesday, showing the amount of industrial output in the U.S. However, this is unlikely to have an impact on the cryptocurrency market.

Home sales and manufacturing data is due to be released this week, but this too will have little impact on riskier asset markets.

Key events this week:

1. Fed Chairman Powell's speech – Monday

2. June Retail Sales Data – Tuesday

3. June Building Permits Data – Wednesday

4. Philadelphia Fed Manufacturing Data – Thursday

5. There are a total of 11 Fed speaker events this week

6. Major banks announce Q2 2024 results

Everybody pay attention…

— Kobeissi Letter (@KobeissiLetter) July 14, 2024

“Earnings season leads directly into the Fed meeting in July, bringing the return of volatility,” Kobeisi Letter wrote in a July 14 post on X.

Federal Reserve Chairman Jerome Powell speaks on Monday, and his comments are closely watched by investors looking for signs of a shift in monetary policy.

Chairman Powell's testimony before Congress last week stoked investor sentiment and spurred speculation about a series of rate cuts, raising the possibility of the first of two cuts in September.

Additionally, the second quarter 2024 earnings season is gearing up this week, with several reports for investors to keep an eye on, including from major banks like Goldman Sachs, Bank of America, and Morgan Stanley.

Cryptocurrency Market Outlook

The cryptocurrency market rallied over the weekend, with its total market capitalization surpassing $2.4 trillion for the first time in two weeks.

However, there has been a downward trend since early June, and it is too early to tell if this trend has reversed.

Bitcoin rose 4.7% in the past 24 hours, hitting $63,000 in morning trading in Asia on Monday. The asset has now recovered 16% from its correction low on July 5.

The rest of the market has followed suit, with Ethereum hitting a two-week high of $3,360 and altcoins such as Solana (SOL), Chainlink (LINK), and Near Protocol (NEAR) all rising by more than 5% in a day.