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July 2024 has started on a positive note! 🟢
As Bitcoin reclaims the $63,000 level, the crypto market shows signs of recovery. Though short on the economic calendar, the upcoming week is packed with significant events that could influence the market’s direction.
Want to know more about what the upcoming week has for the crypto space?
Here are six key things to watch:
#1 ISM Manufacturing PMI Report
On Monday, July 1, June’s ISM Manufacturing PMI report was released. It provided insights into business conditions within the U.S. manufacturing sector. This report is a crucial indicator of broader economic conditions.
A positive PMI reading can boost market confidence, indicating economic expansion. Conversely, a lower-than-expected PMI could signal an economic slowdown, potentially affecting investor sentiment in higher-risk assets like cryptos.
#2 Federal Reserve Chair Jerome Powell’s Speech
Federal Reserve Chair Jerome Powell will speak at a European Central Bank conference on Tuesday, July 2. His comments will be closely monitored for any indications regarding the Fed’s stance on inflation, interest rates, and the overall economic outlook.
Any hints towards future monetary policy actions, especially regarding interest rates, could have immediate repercussions on the crypto market. If Powell hints at maintaining or increasing rates, it might dampen overall market enthusiasm; however, a dovish tone could fuel further recovery in crypto prices.
#3 ISM Services PMI Report
The ISM Services PMI report will be released on Wednesday, July 3. The services sector contributes for almost 70% to the U.S. GDP, making this report highly significant.
Similar to the manufacturing PMI, the services PMI provides a snapshot of economic health and business activity. A robust services PMI could bolster market confidence, while a weaker report might raise concerns about economic growth, influencing market dynamics, including cryptocurrencies.
#4 Federal Reserve June Meeting Minutes
Wednesday, July 3, also marks the release of the minutes from the Fed’s June meeting. These minutes will offer a detailed look into the central bankers’ discussions and deliberations regarding economic conditions, inflation, and monetary policy.
Investors will be keenly analyzing these minutes for any signals about future rate cuts or policy shifts. Positive signals about economic stability and potential rate cuts could enhance investor confidence in risk assets, driving further gains in the crypto market.
#5 U.S. Unemployment Data
Unemployment data, set to be released on Friday, July 5, will be another crucial economic indicator to watch. The labor market’s health is a critical factor for the Fed’s monetary policy decisions.
Rising unemployment could prompt the Fed to consider more aggressive rate cuts to stimulate the economy. Conversely, stable or improving employment figures might suggest that the economy is on a steady recovery path, potentially supporting the ongoing recovery in the crypto markets.
Market Reactions and Key Levels
Bitcoin’s recent climb to $63,000 and its subsequent performance will be a critical focal point for traders and investors. The market’s ability to sustain this level or move higher will largely depend on the outcomes of the aforementioned economic events.
Additionally, key technical levels and indicators, such as the $63,300 resistance and support levels around $60,000, will significantly determine Bitcoin’s short-term trajectory. Traders and investors should watch closely for how Bitcoin and other major cryptos respond to these levels, especially in the wake of new economic data and Fed commentary.
Crypto Market Impact Overall
The crypto markets will continue recovering if the U.S. economic data remains positive. Since the end of February, they have been range-bound around a total capitalization of $2.5 trillion, but last week’s dip tested the lower boundaries of this range.
Bitcoin’s recent surge of 3% to $63,300 is its highest level in just over a week. Ethereum (ETH) and several altcoins, including Solana (SOL), Avalanche (AVAX), Chainlink (LINK), and Near Protocol (NEAR), have also shown gains. The market’s overall sentiment and confidence in cryptos will largely depend on this week’s economic reports and their implications for future monetary policy.
Overall, the first week of July 2024 is pivotal for both the crypto and broader financial markets. Keeping an eye on these key events will be crucial for understanding and navigating the potential market movements as Bitcoin and other cryptos seek to sustain their recent gains.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
