Welcome to “The Crypto Week Ahead,” your comprehensive market guide as we navigate the dynamic landscape of the digital currency space. As Bitcoin takes center stage and sets its trading course at $45,000, the crypto markets are poised for another week of intrigue, volatility, and potential opportunities.
Crypto markets head into a make-or-break week
The crypto markets have surged in the last month, and analysts predict that the market will surge further into 2024. Before 2024 begins, here’s what to watch out for in the crypto ecosystem.
The week ahead stands to be influenced by traditional financial factors. The current value of the global cryptocurrency market capitalization is $1.71 trillion, representing a change of -0.58% over the last twenty-four hours and 92.11% over the past year.
Bitcoin (BTC) currently holds a market cap of $858 billion, signifying a dominance of 50.12%. Stablecoins, meanwhile, have a market capitalization of $131 billion, or 7.64% of the total crypto market capitalization.
Bitcoin (BTC) is currently trading at $43,778.44, with a 24-hour trading volume of $13,773,273,985.70. This indicates a 0.39% decrease in the last 24 hours and an 11.03% gain in the last seven days.
Today’s Ethereum (ETH) price is $2,340.11, with a 24-hour trading volume of $11,758,706,530.90. This indicates a 0.58 % decrease in the last 24 hours and an 8.77% gain in the last seven days.
Market indicators to watch out for in the coming week
The US dollar begins the week with consumer price inflation numbers (Tuesday). Following the unexpected Jobs Report, the Fed may postpone negotiations on rate decreases.
On Wednesday, the November producer price index must also be considered. A rise in producer pricing could indicate an increase in demand and demand-driven consumer price inflationary pressures.
The Fed’s interest rate path will be influenced by the separate inflation reports and the US Jobs Report.
The Fed will release its interest rate decision, rate statement, economic projections, and press conference on Wednesday. The timing of a Fed rate cut will need to be considered in advance. Fed Chair Powell may surprise markets by discussing another rate hike.
The United Kingdom markets
The Pound will be influenced by average salaries and the unemployment rate on Tuesday. The Bank of England continues to be concerned about wage increases. Consistent figures may support the Bank of England’s rejection of interest rate-cut discussions.
The GDP Report will also be considered on Wednesday. A strong UK economy would allow the Bank of England to keep interest rates at their current levels for an extended period of time.
On Thursday, the Bank of England will announce its last monetary policy decision for 2023. The dial will be moved by forward guidance on inflation, the economic outlook, and the probable timing of rate decreases. We also anticipate that the vote divide will pique people’s interest.
On Friday, the focus will be on preliminary private-sector PMIs for December. The services sector, which accounts for more than 70% of the UK economy, will have a greater impact. Notably, the services sector contributes to inflation as well. A surge in service sector activity could give the Bank of England even more cause to keep rates on the rise.
The Europe markets
The EUR/USD will be influenced by the ZEW Economic Sentiment data for Germany and the Eurozone on Tuesday. Recent economic statistics have delivered contradictory signals, lending credence to the report. Despite better-than-expected survey data, German manufacturing orders, industrial production, and trade figures were all higher than predicted.
Eurozone industrial production numbers (Wednesday) should be taken into account before the ECB’s monetary policy decision (Thursday). A dismal macroeconomic backdrop and lower eurozone inflation have spurred betting on an ECB rate decrease in H1 2024. The deal will be moved by forward guidance on inflation, the economy, and interest rates.
On Friday, France’s inflation figures, private sector PMIs, Eurozone wage growth, and trade statistics round out a hectic week. Buyer demand for the EUR/USD will most likely be influenced by inflation, services PMIs, and wage growth.