BTCEUR
Despite the weekend, the crypto markets were able to sustain the gains from last week and even showed signs of further ascension on Monday morning in Asia. Should the US inflation reports coming out this week prove to be positive, this upwards trend could potentially continue.
Just last week, former President Trump declared 30% tariffs on the European Union and Mexico, but the crypto markets seemed unmoved by this development. US stock futures, however, showed signs of nervousness, dipping slightly as an initial response to this latest batch of tariff letters from the White House.
Meanwhile, the start of the second quarter earnings season is imminent, and the July Federal Reserve meeting is just a fortnight away.
On Tuesday, the June Consumer Price Index (CPI) report will be released, one of the two main indicators of inflation relevant to policymakers, businesses, and consumers alike. This data, reflecting price trends, shapes consumer spending and sentiment and directly impacts the Fed’s rate decisions.
Experts predict that June’s CPI will increase by 0.23% to 0.25%, with persistent inflationary pressures, particularly in the energy sector and selected goods, due to tariffs. More inflation data will follow on Wednesday with June’s Producer Price Index (PPI). This report indicates the costs for producers and manufacturers, and measures the cost of producing consumer goods, hence influencing retail prices and serving as a leading indicator of inflation.
The Retail Sales report for June, to be released on Thursday, will provide insights into consumer spending on durable and non-durable goods and serve as a key economic health indicator.
The week will conclude with the release of July’s Michigan Consumer Sentiment Index and Inflation Expectations reports on Friday, which will summarize a monthly survey measuring consumer confidence and long-term inflation expectations.
Thierry Wizman, a global foreign-exchange and rates strategist at Macquarie Group, stated, “Investors have become more relaxed about the overall inflation outlook over the past few months. The market has not exactly shifted toward a disinflationary mode, but it’s certainly less anxious about inflation.”
The earnings season for the big banks will commence this week with reports from JPMorgan Chase, Wells Fargo, Morgan Stanley, and Goldman Sachs.
The total capitalization of the crypto market showed a slight increase on Monday morning, reaching $3.8 trillion, the highest level since mid-January. Bitcoin, which added an additional 1.7% and hit a new all-time high of $119,750 during the morning’s Asian trading session, primarily drove this rise. Ethereum managed to regain $3,000, while the altcoins were mostly in the green, with Stellar and Hedera making significant gains of more than 20%.
