Crypto Volatility Expected as US Releases Key Economic Data
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The crypto market’s correlation with key macroeconomic events has returned after dissipating for most of 2023. With the influence back on, crypto market participants must brace for volatility with key releases lined up this week. In a sentiment-driven market, getting ahead of market-moving economic data releases is critical for traders and investors looking to revise their trading strategies. What Could Cause Market Volatility This Week Four events will be of interest to crypto market players this week. They include: US Economic Calendar. Source: MarketWatch S&P Final US Services PMI Traders will watch the S&P Global Services PMI on Monday, which is compiled by the S&P Global. Sectors covered include consumer (excluding retail), transport and information, communication, finance, insurance, real estate, and business services. In July, the S&P Global Services PMI beat expectations of 55, rising to 56 points, higher than June’s 55.3. This indicates expansion in the services sector, a positive sign for traditional markets, showing higher service demand. US Trade Deficit Markets also await the US trade deficit on Tuesday, which could cause TradFi and crypto volatility this week. Like the S&P Services PMI, the country’s trade deficit also pointed to increased services in June and more car exports. The two positive data points to sharp increases in business inflows, reaching their quickest pace in over a year. “The US is transitioning to a services economy, less manufacturing,” Lumida Wealth CEO Ram Ahluwalia said over positive services data. Read more: How to Protect Yourself From Inflation Using Cryptocurrency These lead to increased investment opportunities and improved economic conditions, boosting sentiment in traditional markets like stocks. The impact may not be as direct or significant on crypto compared to traditional markets. However, if the positive trajectory continues, capital could rotate into risk-on assets like crypto. Positive economic data often influences investor sentiment in the crypto…
Filed under: News - @ August 5, 2024 9:20 am