According to CryptoPotato, the cryptocurrency markets have seen little change over the weekend, with the total capitalization hovering around $2.54 trillion, a figure consistent with the past week's data. The upcoming US holiday on Wednesday is expected to quieten both stock and crypto markets. However, the release of retail sales data and Purchasing Managers Index (PMI) reports may provide insights into the direction of economic recovery.
Key events this week include the release of May's retail sales reports on Tuesday, which provide information on consumer spending on durable and non-durable goods. This data is crucial in assessing the health of the economy, consumer spending habits, and demand-side inflation pressures. Also, the U.S. industrial production reports are due on May 18, although these typically have little impact on the broader market and trading activity.
On Friday, the S&P Global Manufacturing PMI report for June is due. This report captures the state of the manufacturing sector, a significant contributor to the total GDP, and is considered a vital indicator of business conditions and the overall economic climate in the U.S. Some analysts believe that the Federal Reserve's policy outlook is shifting towards a more conservative stance. However, if economic reports in the coming months confirm the outlook of disinflation and price pressures returning to normal, the expectations for a rate cut may be brought forward. This could benefit high-risk assets like altcoins, as more liquidity and lower rates mean easier access to capital for investments.
Despite these economic events, it is unlikely that any of this week's reports will significantly impact the crypto asset markets, and another week of low volatility is expected. Bitcoin has seen a slight decrease, currently trading below $66,000, after spending the weekend just above that level. Ethereum reached $3,645 during Asian trading but has since fallen back to under $3,500. The altcoin market has seen more losses than gains, with Shiba Inu (SHIB), Avalanche (AVAX), Uniswap (UNI), and Near Protocol (NEAR) experiencing larger losses.