Cryptocurrency markets rose over the weekend and maintained their momentum in early Monday trading in Asia.
A slew of economic and inflation reports to be released this week could provide further tailwinds, especially if the likelihood of another deep rate cut increases.
“Last week, a 50 basis point rate cut in November was almost fully priced in, but that could change,” the Kobesi letter said.
Last week's jobs data confirmed continued resilience in the job market, increasing the odds that economic growth will remain above trend this quarter.
Economic event October 7th to 11th
The Federal Reserve is expected to release the minutes of its September meeting on Wednesday, reaffirming how monetary officials view the current economy.
The Core Consumer Price Index (CPI) report, one of the two main indicators used to measure inflation, will be released on Thursday.
Central bank policymakers, businesses, and consumers closely monitor the CPI report because it reflects price trends, influences consumer spending, and directly impacts the Fed's policy rate decisions. .
The Fed cut interest rates in September as price pressures eased, but this has an impact on borrowing costs across the economy.
The Producer Price Index (PPI) for September will be released on Friday. This report reflects producer and manufacturer prices, which directly impact retail prices. This is considered a leading indicator of inflation pressures and next month's CPI.
On Friday, Michigan Consumer Confidence and Consumer Inflation Expectations for September will also be released. The data revealed the results of a monthly survey of consumer confidence and long-term inflation expectations.
This week's main events:
1. EIA Short-Term Energy Outlook – Tuesday
2. Fed Meeting Minutes – Wednesday
3. September CPI Inflation Data – Thursday
4. Initial data on unemployment claims – Thursday
5. September PPI Inflation Data – Friday
6. A total of 18 Fed speaker events will be held this week…
— Kobeissi Letter (@KobeissiLetter) October 6, 2024
JPMorgan Chase, Wells Fargo, and BlackRock are also expected to release their financial results this week.
Virtual currency market outlook
The crypto market rose slightly over the weekend, with total capitalization in Asia increasing by more than $100 billion to $2.32 trillion by Monday morning.
Bitcoin rose to its highest price of the week, reaching $63,900 on Monday morning, before retreating slightly. The asset is currently up 2.8% on the day, erasing most of last week's losses.
Ethereum fared even better, rising 3.7% for the day and hitting $2,500 in Monday morning iron trading. However, ETH remains down 4% from the same period last week.
As of this writing, altcoins are a sea of green, with big gains in Avalanche (AVAX), Shiba Inu (SHIB), Near Protocol (NEAR), Sui (SUI), and Bittensor (TAO) .
However, escalating conflicts in the Middle East and Israeli retaliation could put a damper on the crypto market's recovery.
$BTC Sunday update:
It won't be an easy week to trade.
With FOMC minutes, CPI, PPI, Israel and Iran escalation, the best days could be Monday and Tuesday.
It's important to plan for the week ahead. Let me share my plans.
— CrypNuevo (@CrypNuevo) October 6, 2024
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