Top 5 US Economic Events That Could Shake Crypto Market This Week?

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As a seasoned analyst with over two decades of experience in the financial markets, I’ve witnessed numerous economic events shape and reshape the global economy, including some of the most dramatic shifts during the 2008 financial crisis. This week, we find ourselves at another crossroads, with a series of key US economic events that could significantly influence the crypto market.

Since Donald Trump’s victory in the U.S. election, the crypto market has consistently scaled to unprecedented peaks, and this week is no exception. The Bitcoin price has reached multiple all-time highs, while top alternative coins have experienced significant growth as well. This surge has resulted in a profitable four-month period for tokens, with November being particularly bullish. December seems to be following the same trend due to investor enthusiasm, but this momentum might fizzle out if this week’s U.S. economic events don’t go well for the market.

Top 5 US Economic Events of The Crypto Market This Week

Over the coming days (December 16th to December 21st), some major U.S. Economic occurrences are set to take place, potentially having a significant impact on Bitcoin’s price and the broader market. Among these events are the Federal Open Market Committee (FOMC) meeting, a speech by Chairman Powell, the Personal Consumption Expenditures (PCE) data release, and several others that can impact all significant financial sectors. If circumstances remain favorable, the bullish trend may persist, particularly in relation to Bitcoin, as it reached an all-time high (ATH) of $106.4k earlier today and is headed towards a potential $120K.

Key Events This Week:

1. S&P Global Services PMI data – Monday

2. November Retail Sales data – Tuesday

3. Fed Interest Rate Decision – Wednesday

4. Q3 2024 GDP Data – Thursday

5. November Existing Home Sales data – Thursday

6. November PCE Inflation Data – Friday

Are you…

— The Kobeissi Letter (@KobeissiLetter) December 15, 2024

1. Fed Interest Rate Decision

This coming Wednesday, December 18, 2024, the Federal Open Market Committee (FOMC) meeting in the United States is set to take place. During this gathering, they will deliberate on the nation’s economic situation and possibly consider additional interest rate reductions. Previously, the Federal Reserve has reduced rates by 25 basis points, and various sources, such as the CME FedWatch Tool, predict a high probability of approximately 96% for another 25 basis point cut in the Fed’s key interest rate this week.

2. S&P Global Services PMI Data

The week will begin with S&P Global’s Services PMI report on Monday. This data will display the performance of the US services sector, which is an important aspect of the US economy. The previous month’s report states the data at 56.1, but this could drop to 55.0 this month, as the sector is struggling slightly. 

3. November Retail Sales data 

Following the PMI (Purchasing Manager’s Index), the Bitcoin price might face off against the projected retail sales report for November. While October showed a minor increase of 0.3%, anticipation is high for November due to the holiday spirit among users, with the data forecasted to be between 0.2% and 0.4%.

4. Q3 2024 GDP Data Hitting Crypto Market

This week on Thursday, we’ll get the Q3 2024 GDP figures, which could reveal a decrease in economic growth given the 4.9% expansion seen in Q2. Experts attribute this possible downturn to reduced consumer spending and higher business investments.

Furthermore, they expect this decrease to cause modifications in trade balances. Additionally, another significant report, the existing home sales data for November, will be released on Thursday. However, these reports appear unfavorable based on current charts. In fact, October experienced a 1.4% decline, and a 2% drop in November might not be unexpected.

5. November PCE Inflation Data

As an analyst, I’m anticipating that the November Personal Consumption Expenditures (PCE) inflation report could potentially influence the crypto market, given its correlation with the Consumer Price Index (CPI) reports. Economists predict a 0.2% increase in the November PCE price index, following October’s 0.3% rise. This projection is bolstered by last week’s US Producer Price Index (PPI) data, which showed a 3% rise, higher than anticipated.

Will This Become a Turning Point For Crypto Market?

Over the coming days, there are several significant U.S. economic events happening that could affect the crypto market in various ways. These include the S&P Global Services PMI data and November Retail Sales at the beginning, followed by the FOMC meeting Q3 2024 GDP data later on. As a result, the market may experience some ups and downs, potentially putting a strain on the current Bitcoin price surge. Therefore, it’s crucial for investors to keep a close eye on these reports and shifting trends to predict future movements and adjust their strategies accordingly.

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2024-12-16 15:39