Crypto markets held on to gains over the weekend following an upsurge in the wake of the Federal Reserve meeting last Friday. Uncertainty persists ahead of key inflation data, which could add volatility.
Economic Calendar for the Week
Key inflation and economic data points will be released this week. On Tuesday, consumer confidence levels will be released, indicating shopper's market sentiment. The larger and more impactful second-quarter GDP report is due on Thursday. The update is expected to show little or no change from the initial estimate of a 2.8% annualized growth rate. July's Core Personal Consumption Expenditures (PCE) report is due on Friday, which is the primary gauge of inflation for the central bank. Additionally, August's Michigan Consumer Sentiment Index consumer inflation expectations report will be released on Friday, providing insights into long-term consumer inflation expectations.
Crypto Market Update
Crypto markets gained 6% following the Fed's statement, remaining stable over the weekend but dipping slightly during the Monday morning Asian trading session. Total capitalization fell to $2.34 trillion. Bitcoin spiked to a three-week high of $65,120 on Monday morning but retreated to the $64,000 support level. Ethereum hit $2,788 but later fell to around $2,740 at the time of writing. Positive inflation indicators could sustain market momentum this week.
Future Outlook
The main event this week is Nvidia's earnings report, set to be released on Wednesday. Analysts suggest this could be a pivotal moment for the US stock markets, which have been heavily driven by tech stocks like NVDA. The report may provide insights into market sentiment and potential investor actions towards high-risk assets.
This week, markets will closely monitor new inflation data and major company earnings reports, as these factors could significantly impact the volatility of crypto markets and other high-risk assets.
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