Will Crypto Markets Continue to Rise Thanks to This Week’s Economic Data?
Markets rallied strongly following the Federal Reserve’s pivot last week and the assumption that more liquidity would be injected.
The total crypto capitalization returned to pre-pullback levels, closing again at $2.5 trillion over the weekend and returning to the middle of its range-bound channel.
This week’s economic calendar, it appears, will not be as volatile as last week’s. “After several weeks of uninterrupted economic and inflation data, the markets are beginning to digest this week,” commented the Kobeissi Letter.
“There are multiple macro related news this week, but the impact is limited, and unsurprisingly the Fed has maintained current rates in recent months,” as crypto derivatives provider Greeks Live posted on X.
Economic Calendar
This Tuesday, the change in consumer credit for March will be reported, which describes the change in the total amount of outstanding credit extended to individuals for personal expenses. Investors and analysts will pay attention to this information, due to the existing correlation with both consumer confidence and spending trends.
On Thursday, initial jobless claims data will be released. These are expected to be slightly higher than the previous month.
The Michigan Consumer Sentiment Index for May will issue a preliminary reading on Friday. This is a report that includes the results of a monthly survey on consumer confidence levels.
Also on Friday, the preliminary May Consumer Inflation Expectations Report will be released. This survey by University of Michigan analyzes consumer views on long-term inflation and is used as a component of the Federal Reserve’s inflation expectations calculations.
Besides the economic reports, the Federal Reserve will present eight speeches this week and with negative data on inflation and employment, these could cause some volatility.
There are several major earnings reports released this week, but none of them are related to the digital asset markets.
Crypto Market Outlook
Crypto markets rose 1.7% on the day to reach $2.49 trillion during the Asian trading session on Monday morning.
Weekend volumes were moderate, but gains held and Bitcoin regained key price levels. The asset is currently trading at around $64,000, having hit an intraday high of $64,500 in late trading on Sunday.
CryptoPredictions forecasts that the BTC price today May 6 will be in the $56,609.085 – $83,248.655 price range. Likewise, Bitcoin is predicted to end today at $66,598,924.
Ethereum prices are up 1.6% to $3,170. The asset has also returned to its consolidation channel and did not spend much time below $3,000., The ETH Price is forecast for today (06.05.2024) to be in the $3,059.955 – $4,499.934 price range. Ethereum is predicted to end today at $3,599,947, says CryptoPredictions
Altcoins are also showing marginal gains today. Toncoin (TON), Near Protocol (NEAR), and AI tokens Fetch.ai (FET) and Render (RNDR) are doing particularly well.
According to data from May 3, Toncoin (TON) is finding support in the zone between the 50% Fibonacci retracement level of $4.90 and the 61.8% retracement level of $4.25. Regarding Near Protocol, a rally seems like a remote possibility.
By Audy Castaneda