Can this week’s economic data shake crypto markets out of their hibernation?

Crypto markets remained on the sidelines over the weekend with very little movement for the majors and total capitalization staying around $2.54 trillion where it was last week.

There is a holiday on Wednesday in the US, so stock markets will be closed and crypto markets will likely be quiet.

However, retail sales data and PMI (purchasing managers’ index) reports may shed some light on the direction of the economic recovery.

Economic Calendar June 17-21

May’s retail sales reports will be released on Tuesday, providing information on consumer spending on durable and non-durable goods, which helps gauge the health of the economy, consumer spending habits and inflationary pressures from the of the request.

US industrial production reports are also due on May 18, but these have little impact on the broader market and trading activity.

This week’s highlights:

1. May retail sales data – Tuesday

2. Stock market closed, June 19 – Wednesday

3. June Philly Fed Manufacturing Index – Thursday

4. S&P US Manufacturing/Services PMI data – Friday

5. Existing home sales data May – Friday

6. Total 10 Fed…

— Kobeissi Letter (@KobeissiLetter) June 16, 2024

The June S&P Global Manufacturing PMI report is due on Friday. This data captures business conditions in the manufacturing sector, which contributes significantly to total GDP and is considered an important indicator of business conditions and the overall economic climate in the US.

Many analysts now believe that the Federal Reserve’s policy outlook is shifting toward a more conservative stance.

However, if economic reports in the next two months confirm the prospect of disinflation and price pressures returning to normal, expectations for a rate cut could be pushed forward.

This would be good for high-risk assets like altcoins, as more liquidity and lower rates mean easier access to investment capital.

However, the US central bank is now projecting just one rate cut this year, down from the three it forecast in March, so the high season may still be months away.

Impact of the crypto market

It is unlikely that any of this week’s economic reports will impact the crypto asset markets, so expect another week of low volatility.

Bitcoin has fallen once again, currently trading below $66,000 after spending the weekend stuck just above that level.

Ethereum hit $3,645 during Asian trading, but lost those gains over the past few hours, falling back below $3,500.

There was more red than green across all altcoins, with biggest losses for Shiba Inu (SHIB), Avalanche (AVAX), Uniswap (UNI) and Near Protocol (ARE).