Key Factors Influencing Crypto Markets in the Coming Week

The stream of economic data from the United States continues as the cryptocurrency markets commence December on a downturn, following another significant decline in Bitcoin’s value.

The primary focus this week will be on labor market statistics and delayed PMI reports, with the PCE inflation data for September expected as well. Investor sentiment improved last week in light of tightening expectations, as CME futures indicate an 87% likelihood of a rate cut on December 10.

In a noteworthy statement, President Trump mentioned he has made a decision regarding the next Federal Reserve Chair, promising to reveal it soon.

Economic Events from December 1 to 5

Key data includes November’s ISM Manufacturing PMI reports, due Monday, which will provide insights into the U.S. manufacturing outlook. Tuesday’s schedule includes delayed job openings data for September, and Wednesday will come with employment statistics along with the November S&P Global Services PMI report.

“The upcoming data is likely to reinforce that view with the ISM manufacturing index set to remain in contraction territory and the ISM services index set to move closer to neutral based on regional survey evidence,” said ING economist James Knightley, as reported by the WSJ.

Initial jobless claims will be released Thursday; any revealed weaknesses in labor or economic activity could increase prospects for a rate reduction.

“Following recent comments from key officials and a mixed jobs report, the market is back to strongly anticipating a third consecutive 25 basis-point rate cut,” Knightley added.

As the week progresses, Friday will bring September’s PCE inflation data, along with the December Consumer Sentiment report—added fuel for the ongoing economic discussions.

Major Events This Week:

November ISM Manufacturing PMI – Monday
September JOLTS Job Openings – Tuesday
November ADP Nonfarm Employment – Wednesday
November S&P Global Services PMI – Wednesday
November ISM Non-Manufacturing PMI –… — The Kobeissi Letter (@KobeissiLetter) link

This week’s reports are crucial in determining the market direction as the year closes and whether a shift in monetary policy perception continues.

Crypto Markets Decline

The cryptocurrency space experienced another significant downturn, highlighted by a $540 million loss during late trading on Sunday, resulting in a 4% reduction in total market capitalization. Bitcoin shed nearly 5% of its value, dropping from $91,500 to below $86,000 by Monday morning in Asia. At the time of writing, Bitcoin was trading 5% lower than Sunday.

Ethereum also faced challenges, falling 4.8% to $2,860, while numerous altcoins experienced drastic declines.

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This week is vital as reports will influence market direction leading into the year’s end regarding the anticipated easing of monetary policies.