Will This Week’s US GDP Data Send Crypto Markets Spiraling Even Further?

A busy week lies ahead on the US economic calendar and all eyes are on data for gross domestic product. Meanwhile, crypto markets continue to correct. 

Jun 24, 2024 - 10:00
Will This Week’s US GDP Data Send Crypto Markets Spiraling Even Further?

This week, investors are focusing on key reports that could provide insights into the U.S. economy’s health and outlook.

The most anticipated is the Personal Consumption Expenditures (PCE) report, which serves as the Federal Reserve’s preferred inflation gauge.

There are also reports on consumer sentiment and inflation expectations data that could rattle markets.

Economic Events June 24 to 28

Consumer confidence data will be released on Tuesday, offering an insight into sentiment and economic recovery status. However, the first of the big reports is out on Thursday with the Q1 2024 GDP Growth Annualized (final estimate).

The second estimate showed economic growth slowing to 1.3% annualized, down from Q4’s 3.4%, and the final estimate is expected to confirm these figures.

“All eyes are on GDP data as recent prints have suggested we may be seeing stagflation,” commented macroeconomics outlet The Kobeissi Letter in a post on X on June 24.

Friday, June 28, will be a busy day. May’s Core PCE is released, and investors and policymakers will be eyeing it. Following lower-than-expected May CPI numbers, this report will be closely watched for continuing disinflationary trends.

May’s Personal Income and Personal Spending reports are also released on Friday. This data reflects total personal income and consumer purchases in America, providing crucial information about overall economic health and potentially influencing central bank decisions.

Finally, June’s Michigan Consumer Sentiment Index and Consumer Inflation Expectations are also due on Friday. These reports show consumer confidence levels and long-term inflation expectations, which impact consumer spending and also factor into the Fed’s inflation expectations calculations.

There are also a total of 8 Fed speaker events this week.

Crypto Market Outlook

With such a heavy data week ahead on the economic calendar, there could be more volatility for risk-on assets such as crypto.

Total capitalization has fallen a further 5% over the past 24 hours to hit a six-week low of $2.35 trillion. Markets have dropped 11% so far this month, with around $300 billion exiting the space.

Bitcoin slid 4% in a fall towards $61,000 but managed to hold above it trading at $61,300 at the time of writing.

Ethereum was in greater pain, dumping to a six-week low of $3,310 during Asian trading on Monday.

Altcoins continued to bleed with heavier losses for Solana (SOL), Dogecoin (DOGE), Shiba Inu (SHIB), and Avalanche (AVAX), which fell to its lowest level this year over the weekend.

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