WILL THIS WEEK’S INFLATION DATA SUSTAIN CRYPTO MARKET MOMENTUM?

This week’s U.S. economic agenda is packed, with particular focus on the upcoming PCE inflation data, a crucial metric for the Federal Reserve.

The crypto market exhibited recovery signs over the weekend, but upcoming economic events in the U.S. could sway the market dynamics further.

The Kobeissi Letter underscored the importance of several key economic indicators due this week.

Significant economic reports include Tuesday’s new home sales, which reflect broader economic confidence but don’t directly impact crypto markets. Additionally, Tuesday will unveil preliminary S&P Global Manufacturing PMI and Services PMI reports, crucial indicators of the manufacturing and services sectors’ health, which form a major part of the U.S. GDP.

On Thursday, the preliminary estimate of Q1 GDP growth annualized is set for release, with the Atlanta Fed forecasting a rise to 2.9%.

The critical Core Personal Consumption Expenditures (PCE) report, a key inflation indicator for the Fed, is expected on Friday. The BEA predicts March’s figure will hold at 2.8%, surpassing the Fed’s target of 2%.

Also on Friday, the March Michigan Consumer Sentiment Index and Consumer Inflation Expectations will be released, adding further insights into public economic perceptions and inflation expectations.

With inflation persistently high, Federal Reserve officials face crucial decisions, and any unexpected figures could significantly influence market sentiment.

Meanwhile, significant earnings reports are expected this week from about 20% of S&P 500 firms, including tech giants Microsoft and Alphabet.

In crypto news, the market capitalization maintained the $2.5 trillion mark over the weekend, led by Bitcoin, which soared past $66,000 after briefly dipping below $65,000. Bitcoin prices have remained steady since late February.

Ethereum has also shown strength, regaining the $3,200 level, with a current price of $3,225 after a slight pullback.

Altcoins like LINK, NEAR, and DOT posted gains on Monday morning.

Further fluctuations in the crypto market are anticipated, especially if the upcoming PCE data deviates significantly from forecasts.

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