The cryptocurrency market is showing growth and activity amidst anticipated economic news. Capitalization has risen to $3.96 trillion, with trading volume at $150.71 billion.
Market Capitalization and Price Dynamics
The cryptocurrency market continues its confident rise, with capitalization reaching $3.96 trillion, marking a 1.43% increase. The trading volume over the last 24 hours surged by 25.55%, totaling $150.71 billion. According to the Fear & Greed Index, investor sentiment remains high, sitting at 67, indicating strong 'Greed' in the markets.
Bitcoin (BTC) is trading at $119,500, which is up 2% from the previous day, holding a 60% market share. Ethereum (ETH) has risen 3.84%, reaching $3,944 and owning 11% of the market.
Federal Reserve Decisions
All eyes are on the Federal Open Markets Committee (FOMC), which will conclude its meeting on July 30. The central bank is expected to keep interest rates unchanged within the range of 4.25%-4.5%. Despite criticism from former President Donald Trump directed at Chair Jerome Powell, analysts do not expect an immediate rate cut.
Morgan Stanley’s top U.S. economist Michael Gapen noted that the Fed will adopt a cautious tone due to lingering uncertainty around trade and tariffs. Furthermore, inflation remains above the Fed’s 2% target, and the employment sector shows early signs of strain.
Impact of GDP and Employment Data
On July 31, the advance estimate for Q2 GDP will be released. Projections indicate a consideration for a 2.4% annualized growth rate, following a 0.5% decline in Q1. However, uncertain consumer spending is expected to increase only by 1.5%, and sluggish business investments could hinder swift growth.
The nonfarm payroll report for July, due on August 1, may also affect the market. June saw an unexpected jump of 147,000 new jobs, bringing the unemployment rate down to 4.1%. However, the July data is anticipated to indicate a deceleration, with unemployment expected to rise to 4.2%.
The cryptocurrency market is preparing for an important week, with upcoming economic data potentially shifting market dynamics. Stable economic prospects may further cement investor interest in digital assets.
