Are we bracing for a Bitcoin market shakeup? The crypto world could witness significant shifts this week as three key factors come into play. Last week, the PMI reports indicated a continuous contraction in manufacturing activity for the third consecutive month and a shrink in services activity for the first time in nearly a year.
The crypto markets have seen some stabilization following the recent turbulence stirred by the dispute between US President Donald Trump and tech mogul Elon Musk. However, this calm could be short-lived with the upcoming release of crucial inflation and consumer sentiment reports.
Moreover, the next round of US-China trade discussions is slated to kick off on Monday, as noted by the Kobeissi Letter.
What to Watch Out for This Week:
1. The May Consumer Price Index (CPI) report, a critical measure of inflation watched by central bank policymakers and investors, will be released. It is believed to confirm persistently high price pressures.
2. The May Producer Price Index (PPI) report, reflecting producer and manufacturer costs, will follow the CPI report. The PPI, which affects retail prices, is a significant indicator of impending inflationary pressures.
3. The preliminary readings of June’s Michigan Consumer Sentiment Index and Consumer Inflation Expectations are due on Friday. These reports provide insights into consumer confidence and long-term inflation expectations, which can influence spending and overall economic growth.
According to the CME Fed Watch tool, there’s a near certainty that interest rates will remain unchanged at the central bank meeting on June 18. This week marks the last batch of inflation data before the June Fed meeting.
Crypto Market Forecast:
The crypto markets experienced a minor dip in the past day, with a 2% decrease in total capitalization, reducing it to $3.41 trillion during Monday morning’s trading session in Asia.
Markets seem to have stabilized after the recent fall and remained steady over the weekend. Bitcoin peaked at $106,000 but fell slightly to $105,600 on Monday. Aside from Friday’s dip, Bitcoin has maintained a relatively stable trading range since May’s end.
Ethereum is hovering around the $2,500 mark, struggling to break through the $2,700 resistance but not collapsing towards $2,000. Altcoins show minimal changes with minor gains for XRP and ICP, and further losses for memecoins.
