Outside Source
Crypto markets are in correction mode, dropping around 13% from their peak last week.
There are a few economic reports due out this week despite it being a holiday period. However, they are unlikely to impact crypto markets.
“We expect volatility from last week to carry over into early this week,” commented the Kobeissi Letter.
Economic Events Dec. 23 to 27
Most of last week’s losses were due to the reaction to the news from the Federal Reserve’s meeting on Wednesday, in which it made the decision to reduce rates by 0.25%.
However, the central bank’s “Dot Plot” revealed that policymakers expect only two interest rate cuts next year, not the four they had predicted in September.
Additionally, Fed chair Jerome Powell anticipated higher core inflation in 2025 than was previously forecast, adding that the central bank is “going to be cautious about further cuts.”
Monday will see December’s Consumer Confidence Index report, which conveys the level of consumer confidence in economic activity, impacting their spending, which contributes about 70% of GDP.
Also related to spending is November’s Durable Goods Orders report, which is due on Tuesday. This data measures the cost of orders received by manufacturers for durable goods, such as vehicles and electrical appliances. The report helps assess the state of US production activity and reflects the demand for big-ticket goods, which is also related to consumer confidence and economic sentiment.
Key Events This Week:
1. CB Consumer Confidence data – Monday
2. Durable Goods Orders data – Tuesday
3. November New Home Sales data – Tuesday
4. Markets Closed, Merry Christmas! – Wednesday
5. Initial Jobless Claims data – Thursday
6. Atlanta Fed GDPNow data – Thursday…
— The Kobeissi Letter (@KobeissiLetter) December 22, 2024
Initial jobless claims data will be released on Thursday, following the holiday on Wednesday, and GDP data from the Atlanta Fed will also be released on December 26.
Crypto Market Outlook
Crypto markets continued to decline over the weekend, with total capitalization falling to $3.4 trillion on Monday morning as around $200 billion left the space on Saturday and Sunday.
The correction has wiped out all gains over the past month, sending markets back to late November levels.
Bitcoin continues to pull back with a daily loss of 3%, sending it back below $94,000 during the Monday morning Asian trading session. The asset has now retreated 13% from its Dec. 17 all-time high of $108,000 and is heading back to support level in the low $90K range.
Ethereum has tanked even harder, plummeting 20% from its high of over $4,000 last week to bottom out below $3,200 in late trading on Sunday.
The altcoins were all in the red as the new week began with average losses between 2% and 4%.
This article first appeared at CryptoPotato
