Crypto Markets Remain in Retreat as US GDP Figures Come Out

Monday sees the start of another busy economic week with a number of key events on the calendar in the United States, such as sales quarterly GDP figures. Moreover, crypto markets have been in retreat over the weekend as Bitcoin ETF fervor fades and the correction continues.

Macroeconomics outlet The Kobeissi Letter listed the key economic events for the United States for the week beginning January 22. It follows a week of declines on crypto markets which are cooling after the long-awaited approval of spot Bitcoin ETFs in the US.

Macroeconomics Calendar

Wednesday, January 24 sees the release of the Manufacturing PMI (Purchasing Manufacturer’s Index). This captures business conditions in the manufacturing sector, contributing a significant part of the total GDP.

Therefore, it is an important indicator of business conditions and the overall economic condition in the US. The Services PMI report is also released on Wednesday. The direction and rate of change in the PMIs usually precede changes in the overall economy and both are expected to fall slightly.

Thursday is the quarterly gross domestic product report for the fourth quarter of 2023. GDP is a comprehensive measure of US economic activity. Moreover, changes in this data point tend to reflect the nation’s overall economic health. After 4.9% growth in the third quarter, the economy is expected to have grown by around 1.8% in the fourth.

Read more: How to Protect Yourself From Inflation Using Cryptocurrency

December’s Core Personal Consumption Expenditures (PCE) report will be published on Friday. The data reflects the average amount of money consumers spend monthly, excluding seasonally volatile products such as food and energy.

Central bank policymakers use the annual Core PCE Price Index as their primary gauge of inflation. Furthermore, analysts expect it to show a slight uptick on a monthly and annual basis.

It will also be a stacked week for earnings reports with firms including Tesla, Intel, and Visa, releasing revenue data. 

Crypto Market Outlook 

A positive economic outlook is generally good news for high-risk assets such as cryptocurrencies. However, markets are still cooling following their three-month rally. 

Total market capitalization remained flat over the weekend at $1.71 trillion. Bitcoin was unmoved after Friday’s options expiry, trading at $41,368 during the Monday morning session in Asia.

However, most of the altcoins had started to retreat again with larger losses for Solana, Cardano, Dogecoin, and Polkadot. 

Although daily losses remain small at the moment, red is the predominant colour for crypto markets this Monday.