The cryptocurrency market capitalization reached a new ATH of $3.45 trillion at the beginning of the week as altcoins outperformed Bitcoin, the 'big brother' of the market.
This week's economic data primarily focuses on employment and labor market figures, along with several Purchasing Managers' Index (PMI) reports in the manufacturing sector.
This will be the last week the market receives labor data before the Federal Reserve meeting on December 18, according to a report from The Kobeissi Letter. The report emphasizes: 'This is an important week for the labor market.'
Economic events from December 2 to December 6
Last week, the stock and cryptocurrency markets rebounded as investors felt more at ease with Donald Trump's decision to appoint Scott Bessent, a veteran hedge fund manager, as Secretary of the Treasury.
However, the Fed's preferred inflation measure, Core PCE, rose to 2.8%, raising concerns about the risk of escalating inflation and the possibility that the Fed may shift policy towards tightening.
The strength of the economy, as evidenced by last week's GDP data, along with persistently high inflation, has raised questions for investors about the possibility of further interest rate cuts this year.
Monday (12/2): The November manufacturing PMI report from the Institute for Supply Management (ISM) will be published, providing insights into business conditions in the manufacturing sector in the U.S. This is a leading indicator of economic trends.
Tuesday (12/3): Release of data on the number of new job openings.
Wednesday (12/4): The November non-farm employment data will be released, along with the ISM services PMI report, providing insights into business conditions in the services sector in the U.S.
Friday (12/6): Non-farm payrolls and unemployment rate report – the two most important economic indicators closely monitored by policymakers to assess the overall health of the economy.
On the same day, preliminary figures for the Michigan Consumer Sentiment Index and December inflation expectations will also be released. These reports reflect consumer confidence and long-term inflation outlook.
There are several Fed speeches this week, including a speech by Chair Jerome Powell on Thursday, December 5.
Cryptocurrency market surges
Earlier this week, the cryptocurrency market continued to grow robustly, with total capitalization (TOTAL) reaching a new all-time high of $3.45 trillion.
TOTAL daily chart | Source: TradingView
Bitcoin edged up, touching the $98,000 mark before pulling back, while Ethereum was the main driver, reaching a six-month high of $3,750 on December 2.
XRP also surged over 30%, reaching a six-year high of $2.48 on Monday morning. Other coins like Dogecoin (DOGE), Cardano (ADA), Avalanche (AVAX), Shiba Inu (SHIB), and Stellar (XLM) also recorded significant gains.