The cryptocurrency market is witnessing significant growth, particularly with Bitcoin and Ethereum, drawing the attention of investors and analysts.
Focus on Macroeconomic Data and Powell's Remarks
This week, market participants should pay attention to a series of important macroeconomic data expected to be released, as well as remarks from central bankers speaking at the European Central Bank (ECB) forum. Federal Reserve Chairman Jerome Powell will speak at the forum panel on Tuesday alongside central bank heads from the UK, South Korea, and Japan.
Last week, Powell informed US officials that the Fed is not in a hurry to cut interest rates. Meanwhile, US President Donald Trump criticized Powell on Sunday for keeping interest rates 'artificially high.' These conflicting statements have created uncertainty regarding the Fed's future monetary policy.
Peter Chung, Head of Research at Presto Research, labeled this week as 'significant,' reminding that labor market data including May’s Job Openings and Labor Turnover Survey (JOLTS), June’s non-farm payrolls, and the unemployment rate are set for release. Chung underscored that 'foundations in the realm of cryptocurrency have never been stronger thanks to policy winds and mainstream adoption.' He added, that if these data indicate weakness, expectations for a rate cut could strengthen, potentially raising prices of risk assets, including cryptocurrencies.
Tariff Discussions Continue to Garner Attention
Vincent Liu, CIO of Kronos Research, emphasized that investors are also closely monitoring developments in tariff discussions and movements in the US dollar as deadlines on July 8 and 9 approach. Liu noted, 'Tariff talks and continuing dollar weakness will capture the market’s attention this week ahead of the July 8 deadline.'
Liu highlighted that the Crypto Fear and Greed Index stands at 66, indicating a 'high' market sentiment, but warned that any significant macro change could disrupt this scenario. He concluded by stating, 'Cryptos are rising but trust can be tested. Momentum is building as macro headwinds ease and risk appetite returns.'
Overall Cryptocurrency Market Situation
Amidst the surge of Bitcoin surpassing the $108,000 mark and Ethereum crossing $2,500, many altcoins are also experiencing upward trends, some exceeding 5% growth. This resurgence in prices has redirected the attention of investors toward upcoming macroeconomic data releases and statements from major central banks during the ECB forum. It’s notable that the cryptocurrency market has largely recovered from losses incurred due to tensions between Iran and Israel that previously drove Bitcoin below $100,000.
Overall, the current events in financial markets, including the cryptocurrency surge and the focus on macroeconomic data, create new dynamics for investors, indicating the potential for further growth in crypto assets.
