How This Week’s US Economic Data Could Jolt Crypto Markets

U.S. economy will be busy this short week as important consumer spending data is reported. But how will this affect the cryptocurrency markets?

Despite advances gained last week with the U.S. government’s approval of spot Ethereum exchange-traded funds, cryptocurrency markets were largely quiet over the weekend.

More economic data, including gross domestic product measures and consumer confidence, will be released this week.

May 27- 31 on the US Economic Calendar

The U.S. markets will be closed on Monday in observance of Memorial Day, and minimal volatility is anticipated for cryptocurrency assets.

Tuesday will witness the release of consumer confidence statistics, which showed a minor improvement in May compared to the previous month due to last week’s manufacturing and services PMIs and better-than-expected weekly unemployment claims.

The Q1 2024 GDP Growth Annualized report, which offers an advanced estimate and insight into the state of the economy from the previous quarter, will be released on Thursday.

According to the U.S. Bureau of Economic Analysis, the economy has slowed to an annualized growth rate of 1.5%, which is marginally less than earlier projections.

The Core Personal Consumption Expenditures (PCE) report for April, which shows consumers’ average monthly spending amount, is scheduled to be revealed on Friday. Policymakers at the Federal Reserve FOMC closely monitor this data as their primary indicator of inflation and will use it to project whether inflation is declining.

Also due on Friday are April’s corresponding personal income and personal spending data. This represents the total amount of personal income earned in America and the total number of products and services consumers have purchased.

Since consumer spending is a significant contributor to economic growth, these reports can influence Fed monetary policy choices and offer information on the state of the economy.

Additionally, this week, we will see eleven lectures from the leaders of the Federal Reserve.

This week’s earnings reports include computer company H.P., software company Salesforce, and wholesale giant Costco.

Outlook for the Crypto Market

Over the weekend, Donald Trump, the presidential contender, offered the cryptocurrency business a significant boost to come if elected.

It was insufficient, though, to move the markets, which spent the weekend centered around the $2.7 trillion market cap level.

The Asian trading session on Monday morning has been quiet. As of this writing, Bitcoin is currently trading just below $69,000.

With the ETF approvals, Ethereum prices improved, rising 4% on the day to $3,900, while the other coins mainly stayed unchanged.