According to CryptoPotato, cryptocurrency markets have begun to recover over the weekend, with total capitalization gaining approximately 4%. This recovery is primarily driven by Bitcoin, which has reclaimed the $63,000 level during Asian trading on Monday morning. The economic calendar for this short week does not feature many significant reports but could still provide insights into the direction of economic recovery in the United States. Furthermore, U.S. jobs data could affect the likelihood of Federal Reserve rate cuts later this year, potentially impacting crypto markets as confidence in higher risk assets returns.
On Monday, the release of June’s ISM Manufacturing PMI (Purchasing Managers Index) is expected. This report provides insights into business conditions in the manufacturing sector and serves as an indicator of broader economic conditions. It is used to assess the state of the economy and predict changing trends. A similar ISM Services PMI report is due on Wednesday, which will highlight conditions in the U.S. services industry, contributing more than 70% of the GDP. Changes in these PMI reports often precede changes in the broader economy.
Federal Reserve Chair Jerome Powell is scheduled to speak at a European Central Bank conference on Tuesday, followed by the release of the minutes from the Fed’s June meeting on Wednesday. These events could provide insights into how central bankers perceive inflation, interest rates, and the economy. Unemployment data will be released on Friday, and these reports will be closely monitored by the Fed to assess the overall health of the economy. Central bank policymakers have stated that with improving inflation, it is crucial to keep a close eye on jobs. An unexpected increase in unemployment could prompt the Fed to cut interest rates more aggressively, with the first cut expected in September.
Crypto markets are expected to continue their slow recovery if U.S. economic data is positive. Markets have been largely range-bound in terms of total capitalization since the end of February, fluctuating around $2.5 trillion. However, they hit the lower boundary of that range during last week’s dip. Bitcoin has added 3% over the past 24 hours, reaching $63,300 at the time of writing, its highest level in just over a week. Ethereum prices gained a similar amount, reaching $3,483 ahead of key ETF announcements this week. The altcoins were largely in the green, with greater gains for Solana (SOL), Avalanche (AVAX), Chainlink (LINK), and Near Protocol (NEAR).