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Crypto market week ahead- here’s what to expect the last week of 2023

TL;DR

  • Crypto and traditional markets come to an end in 2023, having survived the inflation scare, and 2024 markets come in with a focus on the United States, Japan, and China economies.
  • This coming Tuesday, Chicago Fed National Activity, as well as the house price numbers, are to kick off the week, and that will set the tone for what the DeFi and TradFi markets.
  • The global crypto market cap is $1.76 Trillion, up 0.0% in 24 hours and 108.41% in a year. Bitcoin’s market cap is $851 billion, indicating 48.48% domination. Stablecoins’ market cap is $132 billion, 7.5% of the crypto market.

The crypto world is showing a fruitful ending towards the new year, 2024, with events piling up showing an expected green market. Among the big players showing a lot of interest include the United States, Japan, and China, as their economies intend to focus on market action for next year. 

Major events include the heightened central bank activity. The US Dollar will be trending based on the housing sector and unemployment claims. In Europe, the ECB issues various warnings and the Kiwi dollar and Aussie to be impacted by the Chinese indicator 

Events around the United States Dollar 

This coming Tuesday, Chicago Fed National Activity, as well as the house price numbers, are to kick off the week, and in this case, the Housing sector could have a bigger impact. Its upward trend could indicate a robust economy for the United States

Economists consider the data numbers under the housing sector could lead to economic indicators. Moreover, this could support consumer confidence. The chain reaction this causes is an increase in inflation, specifically being driven by demand, which is initiated by increasing consumer confidence. 

Additionally, the US unemployment claims will also be taken into consideration as the initial steady joblessness could indicate favorable conditions for a stable labor market. This comes in as a tightened labor market would drive wage growth as well as lead to disposable income. 

As such, an upward movement in this disposable income would, in turn, fuel consumer spending and influence demand-driven inflation.

Market Events in Europe 

Among the major influencers of the European economy is the Spanish indicator, which mostly targets the buyer appetite for EUR/USD currency pairs. The report to be made public this coming Friday will influence the preliminary inflation numbers for December. A result of this is attracting investor interest. 

To tackle inflation, the European Central Bank seeks to control the rates on a higher frame for a long time. Steady inflation numbers could signal support warnings from Executive Board members for the ECB. 

The pound is expecting a shortened week ahead as the UK prices will be considered on Friday. Also, in case of an unexpected fall in the house price in the United Kingdom, it could influence the buy demand for the Pound. The decline would affect consumer confidence as well as spending for the customers. 

If a downtrend in consumer spending would reduce demand-driven inflation. In the event of a softer inflation, it would allow the BOE to start a discussion based on the cuts in interest rates. 

The Loonie doesn’t have any economic indicator that influences the buyer’s appetites, and as such, the lack of status will have the Canadian dollar place its hands in crude oil numbers.

Moreover, the crude oil prices will also influence the Loonie trends. The report on Wednesday will illustrate the industrial profit numbers from China and could affect the buyer appetite even for riskier assets as well as the Canadian dollar. 

The Australian dollar will be impacted by the Chinese economic indicators as well as the Beijing stimulus chatter. The Aussie dollar will take into consideration the profit numbers in China.  

Additionally, an improved economic condition could fuel an increase in industrial profits and could also positively affect demand. Moreover, the Chinese accounts and economic indicators would assist in backing one-third of the exports to Australia. 

On Tuesday, the Japanese yen would have its considerations focused on Japanese labor data. The tighter the market conditions, the more likely it is to align the higher wage expectations in the region. An upward trend in wages would push consumer spending, and this, in turn, will push inflation pressure. 

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Florence Muchai

Florence is a crypto enthusiast and writer who loves to travel. As a digital nomad, she explores the transformative power of blockchain technology. Her writing reflects the limitless possibilities for humanity to connect and grow.

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