Will the cryptocurrency market continue to rise following this week's economic data?

Following the Federal Reserve's change of policy last week and the assumption of further liquidity provision, markets have rebounded strongly.

The total cryptocurrency market capitalization bounced back to pre-dip levels and closed at $2.5 trillion over the weekend, back in the middle of the range.

The economic calendar this week is not expected to be as volatile as last week. “After weeks of nonstop economic and inflation data releases, markets will have a lot to digest this week,” Kobeisi Letter said in a statement.

“While there has been some macro news this week, the impact has been limited and, as expected, the Fed has kept rates on hold for the past few months.” said Crypto derivatives provider Greeks Live.

Economic Calendar

The change in consumer credit for March will be released on Tuesday and calculates the change in the total amount of outstanding credit provided to individuals for personal spending.

Investors and analysts pay close attention to this data because changes in consumer credit are strongly correlated with both consumer confidence and spending.

Initial jobless claims are expected to be released Thursday and are expected to be up slightly from the previous month.

Friday marks the preliminary release of the Michigan Consumer Sentiment Index for May, a report that provides results from a monthly survey of consumer confidence levels.

A preliminary report on consumer inflation expectations for May is also due to be released on Friday. The University of Michigan survey analyzes consumers' views of long-term inflation and is used as a factor in the Fed's calculation of inflation expectations.

Key events this week:

1. EIA Short-Term Energy Outlook – Tuesday

2. 10-Year Treasury Bond Auction – Wednesday

3. Initial Jobless Claims Data – Thursday

4. MI Consumer Confidence Data – Friday

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

6. About 20% of S&P 500 companies report earnings

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— Kobeissi Letter (@KobeissiLetter) May 5, 2024

In addition to the economic reports, there are eight speeches scheduled by the Federal Reserve this week, and these may cause some volatility given the lackluster latest inflation and employment data.

Several major earnings reports are coming out this week, none of which are related to the digital asset markets.

Cryptocurrency Market Outlook

During Monday's morning Asian trading session, the cryptocurrency market rose 1.7% from the previous day to $2.49 trillion.

Trading volume was light over the weekend, but the gains were sustained and Bitcoin reclaimed key price levels. The asset is currently trading at around $64,000 and hit an intraday high of $64,500 in late trading on Sunday.

At the time of writing, the price of Ethereum was up 1.6% to $3,170 as the asset returned to its consolidation channel and did not spend much time below $3,000.

Altcoins are also seeing modest gains today, with Toncoin (TON), Near Protocol (NEAR) and artificial intelligence tokens Fetch.ai (FET) and Render (RNDR) doing particularly well.