Cryptocurrency markets remained relatively stable over the weekend, with total market capitalization hovering just above $2.5 trillion.
Additionally, Friday's inflation numbers helped markets recover a bit over the weekend, with core PCE coming in in line with expectations after a small increase.
Digital assets, especially Bitcoin, were also boosted by bullish comments from Donald Trump at the Bitcoin 2024 conference on Saturday. However, the market was boosted on Monday morning.
Economic events from July 29th to August 2nd
The July Consumer Confidence report is due to be released on Tuesday, a gauge of confidence that influences consumer spending, which accounts for about 70% of U.S. GDP.
The ISM Manufacturing PMI report is due to be released on Thursday. The data reflects business conditions in the manufacturing sector and is a gauge of overall economic conditions.
Friday will see the release of employment and unemployment data showing how many new jobs were created and the percentage of people actively looking for work in the previous month. These reports are also key indicators for central banks to take labor market changes into account when making decisions.
But investors will likely wait until Wednesday when Federal Reserve policymakers meet to discuss a possible interest rate cut.
Economists expect no rate cut is likely this week, but the Fed is expected to give a clear signal of a rate cut when it next meets in September.
“Volatility is back and this is shaping up to be a big week,” Kobeisi-Leter commented, adding that “economic data, earnings and the July Fed meeting all occur simultaneously this week.”
This week will also see several big second quarter earnings reports, including members of the “Magnificent Seven”: Apple, Amazon, Meta and Microsoft. Other notable names include AMD, Coinbase, PayPal and MasterCard.
Cryptocurrency Market Outlook
Its market capitalization rose more than 3% in the past 24 hours to $2.59 trillion in early Monday trading in Asia.
As has been the case for most of this month, Bitcoin has led the rally following recent political bullish sentiment, rising to just shy of $70,000 in the early morning hours of July 29.
While most altcoins were up, the gains were minimal, at around 2% to 4%. Only Bitcoin Cash (BCH) performed better, rising 13% in 24 hours to $445.
