Crypto market capitalization has topped $2.5 trillion for the first time since late July as Bitcoin powers towards $70,000, but will this week’s economic reports propel it further?
Additionally, the United States presidential election is just two weeks away, “which should begin to bring more volatility,” commented the Kobeissi Letter.
Economic Events Oct. 21 to 25
Wednesday will see existing home sales data released providing insights into the health of the housing market, which has significant implications for US economic activity but bears little impact on crypto markets.
Thursday will see more home sales data and initial jobless claims. The latter report paints a picture of the labor market, which has wider implications for economic activity.
September’s durable goods orders reports are released on Friday, measuring the cost of orders received by manufacturers for durable goods, such as vehicles and electrical appliances. This one assesses the state of production activity and demand for big-ticket goods, which is also a measure of consumer sentiment.
October’s Michigan Consumer Sentiment Index and Consumer Inflation Expectations reports are also released on Friday. This data portrays the results of a monthly survey of consumer confidence levels and views of long-term inflation.
Key Events This Week:
1. Existing Home Sales data – Wednesday
2. Initial Jobless Claims data – Thursday
3. New Home Sales data – Thursday
4. September Durable Goods Orders data – Friday
5. MI Consumer Sentiment data – Friday
6. ~15% of S&P 500 companies report earnings…
— The Kobeissi Letter (@KobeissiLetter) October 20, 2024
Additionally, around 15% of S&P 500 companies report earnings this week. Some of the big names in tech include Microsoft, IBM, Amazon, and Tesla.
Tech stocks finished last week on a high, and that momentum could continue this week, which could also roll over into digital asset markets.
Crypto Market Outlook
Total cap topped $2.5 trillion during early trading in Asia on Monday morning. It is the highest they have been for almost three months.
Bitcoin was the primary driver, as it has been for the past few weeks, tapping $69,430 during early trading on Monday. However, the asset failed to reach the psychological $70,000 level and pulled back to $68,900 at the time of writing.
Ethereum also got a rare boost and actually outperformed its big brother in terms of daily gains, which were 3.5%. ETH hit $2,760, its highest level since August 25, but pulled back slightly a few hours later.
The altcoins were also boosted by the move, with Solana (SOL) reaching $170 after gaining 6.6%, Cardano adding 5% to reach $0.368, and Chainlink (LINK) topping $12 following a similar gain.
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