The upcoming week in the cryptocurrency market comes against the backdrop of Bitcoin’s recent struggles to overcome the $42,000 resistance levels, following a surge sparked by the Federal Reserve’s dovish stance last week. While other altcoins still face these challenges, market participants are preparing for the release of key economic data from the United States, attempting to gauge their potential impact on the crypto sphere.
Kobeissi’s letter Underlines key economic events in the United States starting December 18. These key events present potential catalysts that could influence Bitcoin’s trajectory throughout the year.
Could crucial U.S. economic updates be watershed events?
Bitcoin could continue to decline if it fails to break above the $41,800 resistance zone, with immediate support near the $40,600 level or the latest low. As Bitcoin grapples with current resistance, the start of the week witnesses the disclosure of housing and construction data, which are expected to remain stagnant. These releases, scheduled for Monday and Tuesday, may not significantly influence crypto markets, but are key economic indicators that reflect broader market sentiment.
But wait for a crucial event on Wednesday that involves the release of the annualized third-quarter GDP growth report, which should provide insight into the health of the U.S. economy over the past quarter. Analysts predict it will echo the second quarter’s 5.2% expansion rate, offering crucial clues about economic stability and growth momentum.
Thursday’s blockbuster will bring key reports including early jobless claims, the Philadelphia Fed’s manufacturing survey and key economic indicators. These publications serve as key references, providing a comprehensive overview of the current economic landscape.
The focus Friday will be on November’s core personal consumption expenditures (PCE), a crucial measure watched by policymakers for its implications for inflation. Forecasts suggest a decline to 3.2%, signifying potential changes in consumer spending and inflation trends.
Limited impact on the market, how does Altcoin react?
Current market sentiments are prevailing towards a mixed reaction from investors and major atcoins have seen limited action. However, Monday’s Asian trading session saw a notable 2.5% drop in the total crypto market capitalization, standing at $1.61 trillion. The decline follows a significant $100 billion contraction from its peak earlier this month, reflecting continued market volatility and adjustment.
Bitcoin’s recent 2.3% drop to $40,963, which was notably followed by the expiration of 37,000 Bitcoin options, contributes to the overall market sentiment.
Other altcoins such as Solana, Cardano, Avalanche, Polkadot and Shiba Inu suffered even greater losses, each falling more than 5%. These market movements suggest a volatile trajectory, indicating potential changes in investor sentiment and market dynamics amid ongoing economic assessments.