Crypto markets remained flat over the weekend after last week's decline, dropping total capitalization to $2.38 trillion.
This week's economic calendar could bring more volatility as key inflation data is reported alongside a number of Federal Reserve speeches, which could indicate the future direction of monetary policy.
Calendar Economy
On Tuesday we will see the release of the core report #PPI (Producer Price Index), which reflects input prices for producers and manufacturers, measures the production costs of consumer goods and directly affects retail prices.
This is seen as a pre-indicator of inflationary pressures, so it is the main indicator for the following month's CPI (Consumer Price Index) report.
Important Events This Week:
1. PPI Inflation Data for April – Tuesday
2. Chairman's Speech #fed Powell – Tuesday
3. CPI Inflation Data for April – Wednesday
4. Retail Sales Data for April – Wednesday
5. Philadelphia Fed Manufacturing Data – Thursday
6. A total of 12 Fed speaking events this week…
The April Core #cpi Report was released on Wednesday. It is one of two main indicators used to measure inflation, the second being Personal Consumption Expenditures or PCE.
The CPI directly shapes price trends in the economy, consumer spending, and business prospects. This also has a direct impact on the Federal Reserve's interest rate policy decisions.
“If CPI inflation rises again this week, it would mark the third consecutive monthly increase,” wrote the Kobeissi Letter.
There are also a total of 12 Federal Reserve speaking engagements this week, including chairman Jerome Powell on Tuesday.
According to a survey of corporate CEO expectations conducted by the Conference Board last week, a majority of US CEOs expect the Fed to cut interest rates only once this year.
Of the 136 CEOs surveyed, 31% said they did not expect any rate cuts this year, while 26% projected 2 rate cuts. “Meanwhile, markets are pricing in just 2 rate cuts this year as a base case with the first cut in September,” he reported. Kobeissi.
Interestingly, Elon Musk criticized the Fed over the weekend, comparing it to the board game Monopoly. He specifically refers to the part of the rules that refers to banks in the game, stating that banks never go bankrupt and can print new money when necessary
Crypto Market Insights
Cryptocurrency markets remained calm this Monday morning in Asia, with little movement among most major currencies.
Bitcoin price is around $61,000 at the time of writing, and remains at almost the same time as yesterday. However, the asset is down 4.3% since the same time last week.
Ethereum failed to recover above $3,000 after falling below it on May 10 and remains short-term bearish at $2,900 at the time of writing.
Altcoins were mostly in the red, with bigger losses for Solana, Dogecoin, Avalanche, and Near Protocol.
This Week's US Inflation Report Expected to Rock Crypto Markets
