According to CryptoPotato, investors are keenly awaiting several key reports this week that could shed light on the health and future of the U.S. economy. The Personal Consumption Expenditures (PCE) report, the Federal Reserve's preferred inflation measure, is among the most anticipated. Other reports on consumer sentiment and inflation expectations could also impact markets.
The week's economic events include the release of consumer confidence data on Tuesday, which will provide insights into sentiment and the state of economic recovery. The first major report, the Q1 2024 GDP Growth Annualized (final estimate), is due on Thursday. The second estimate indicated a slowdown in economic growth to 1.3% annualized, down from Q4's 3.4%. The final estimate is expected to confirm these figures. 'All eyes are on GDP data as recent prints have suggested we may be seeing stagflation,' commented The Kobeissi Letter, a macroeconomics outlet.
Friday, June 28, will be a busy day with the release of May's Core PCE. Investors and policymakers will be closely monitoring this report, especially following lower-than-expected May CPI numbers. May's Personal Income and Personal Spending reports, which reflect total personal income and consumer purchases in America, will also be released on Friday. These reports provide crucial information about the overall economic health and could influence central bank decisions. June's Michigan Consumer Sentiment Index and Consumer Inflation Expectations are also due on Friday. These reports show consumer confidence levels and long-term inflation expectations, which impact consumer spending and also factor into the Fed's inflation expectations calculations. There are also a total of 8 Fed speaker events this week.
With such a heavy data week ahead on the economic calendar, there could be more volatility for risk-on assets such as crypto. Total capitalization has fallen a further 5% over the past 24 hours to hit a six-week low of $2.35 trillion. Markets have dropped 11% so far this month, with around $300 billion exiting the space. Bitcoin slid 4% in a fall towards $61,000 but managed to hold above it trading at $61,300 at the time of writing. Ethereum was in greater pain, dumping to a six-week low of $3,310 during Asian trading on Monday. Altcoins continued to bleed with heavier losses for Solana (SOL), Dogecoin (DOGE), Shiba Inu (SHIB), and Avalanche (AVAX), which fell to its lowest level this year over the weekend.
