The crypto market faces a crucial week ahead of the 2024 US presidential election. Three macroevents are poised to influence the cryptocurrency market sentiment.
These events, coupled with major tech earnings reports, could likely impact both traditional and crypto markets.
CB Consumer Confidence Data set for Tuesday
The CB Consumer Confidence Data, scheduled for release on Tuesday, stands as a critical indicator of economic sentiment.
This metric directly affects market psychology and investment behavior. For cryptocurrency markets, consumer confidence data can signal a broader risk appetite.
Strong confidence numbers typically encourage investment in risky assets like cryptocurrencies. However, weak readings could potentially impact crypto prices negatively.
Thursday brings the September PCE (Personal Consumption Expenditures) inflation data. It is a preferred inflation gauge of the Federal Reserve.
This data point carries particular significance for cryptocurrency markets. This is because inflation trends often influence Bitcoin’s narrative as a hedge against currency devaluation.
Higher-than-expected inflation could strengthen Bitcoin’s position as a store of value, while lower readings might reduce immediate demand for inflation hedges.
Five of the ‘Magnificent Seven’ to release earnings
Perhaps the most important influence this week comes from earnings reports of major technology companies.
Five of the “Magnificent Seven” mega cap companies – Alphabet, Microsoft, Meta Platforms, Apple, and Amazon – will release their third-quarter results.
These companies collectively represent 23% of the S&P 500’s weight, making their performance crucial for overall market sentiment.
The Magnificent Seven stocks currently trade at an average forward P/E ratio of 35 times. This reflects strong profit growth compared to the broader market.
However, this growth gap is expected to narrow in the coming quarters. Their performance could majorly influence cryptocurrency markets.
This is given the high correlation between tech stocks and digital assets in recent years.
Global crypto market cap surges 2%
This concentration of major events creates a potentially volatile trading environment for both traditional and crypto markets.
The cryptocurrency market’s sensitivity to macroeconomic data and traditional market performance has increased greatly. This makes these events particularly relevant for digital asset traders.
The timing of these events, just before the US presidential election, adds another layer of stress.
For cryptocurrency investors, this week requires careful attention to these macro factors.
As the week started, the global crypto market cap has surged by over 2% in the last 24 hours. At press time, the global crypto market cap was standing at $2.33 trillion.
The total crypto market volume over the last 24 hours was up by over 35% and stood at $59.26 billion at press time.
Bitcoin and Ethereum have shown similar trajectories and were up by almost 2.5% in the last 24 hours.
When it came to the top ten cryptocurrencies by market cap, Dogecoin showed the highest surge with a 6% pump in the same timeframe.
