Three Factors That Could Propel the Crypto Market This Week

The cryptocurrency market has reached a significant milestone, with its total market capitalization exceeding $2.5 trillion for the first time since late July. This surge comes as Bitcoin approaches the critical $70,000 mark. Investors are curious whether this week’s economic reports will further propel the market.

Moreover, with the US presidential election just around the corner in two weeks, the Kobisi letter notes that we can expect increased market volatility as the political climate intensifies.

Key Economic Events: October 21st – 25th

This Wednesday, data on existing home sales will be published, offering insights into the state of the housing market. Although the housing sector significantly influences the overall economy in the United States, its effect on the cryptocurrency market remains minimal.

On Thursday, additional home sales data and new unemployment claims will be released. These reports provide an important overview of the labor market and have substantial implications for overall economic activity.

The Durable Goods Orders Report for September will come out on Friday, revealing the costs manufacturers incur for durable goods such as vehicles and household appliances. This report assesses production status and demand for higher-priced items, serving as a gauge of consumer sentiment.

Also on Friday, we will see the Michigan Consumer Confidence Index and Consumer Inflation Expectations report for October. These figures stem from a monthly survey that studies consumer confidence and perspectives on long-term inflation trends.

Major events this week include:

1. Existing Home Sales Data – Wednesday

2. Initial Unemployment Claims Data – Thursday

3. New Home Sales Data – Thursday

4. September Durable Goods Orders Data – Friday

5. MI Consumer Sentiment Data – Friday

6. Approximately 15% of S&P 500 companies will announce earnings…

— Kobeissi Letter (@KobeissiLetter) October 20, 2024

This week, around 15% of S&P 500 companies are set to report their earnings, with major tech players like Microsoft, IBM, Amazon, and Tesla expected to share their results. The tech sector saw gains last week, and this positive momentum may carry forward into the cryptocurrency market.

Outlook for the Virtual Currency Market

On Monday morning, the total cryptocurrency market cap touched $2.5 trillion in early Asian trading, marking the highest level in roughly three months.

Bitcoin played a crucial role in this rise, peaking at $69,430 in the initial trading hours. However, it couldn’t maintain the upward momentum and dipped to $68,900 at the time of reporting.

Ethereum experienced notable gains as well, outperforming Bitcoin in daily growth at 3.5%. It reached its highest point since August 25, valued at $2,760, before retracting slightly later on.

Other altcoins also witnessed gains, with Solana (SOL) climbing 6.6% to $170, Cardano increasing 5% to $0.368, and Chainlink (LINK) similarly rising to over $12.