As the cryptocurrency market gradually recovers from the massive hack attack on Bybit, the release of several important data points on the U.S. economic calendar may further impact the market.
Recent economic reports show cracks in the resilience of the U.S. economy last week, with the services PMI index hitting its lowest level in over two years. This week, GDP and PCE inflation data will be the focus of market attention and may further disrupt market sentiment.
Important Economic Events This Week
According to Kobeissi Letter's X tweet, a series of key economic data will be released this week: consumer confidence data will be released on Tuesday, new home sales data will be announced on Wednesday, and the fourth quarter GDP data will be the main focus on Thursday.
Economists expect the GDP growth rate to remain at the previously estimated 2.3%. If the data is higher than expected, it may further weaken expectations for a Federal Reserve rate cut; if it is lower than expected, it may provide the central bank with reasons to support a rate cut.
On Friday, the January Core Personal Consumption Expenditures (PCE) report will be released, which is the main indicator for Federal Reserve policymakers to measure inflation. Kobeissi Letter pointed out that with the rebound of PPI and CPI inflation, PCE data may become the 'last piece of the puzzle' to provide a clearer picture of inflation trends.
In addition, the Senate Banking Committee will hold a hearing on Wednesday titled 'Exploring a Bipartisan Legislative Framework for Digital Assets,' which may have a positive impact on the cryptocurrency market.
Meanwhile, AI giant Nvidia will announce its earnings on Wednesday, and its performance may affect AI-related crypto assets. This week will also see the release of income reports from several crypto miners, including Riot, Marathon, Bitdeer, Terawulf, and Core Scientific, which may provide the market with more industry dynamics.
Cryptocurrency Market Performance
According to Coinmarketcap data, as of now, the cryptocurrency market capitalization has decreased by 1.81% in the last 24 hours, to $3.14 trillion. Nevertheless, the market capitalization has remained roughly at this level over the past week, indicating that the market is gradually recovering from the plunge triggered by the Bybit hack.
Despite a slight decline in Bitcoin price, it dropped below $96,000 during Monday's Asian trading session. However, for most of this month, Bitcoin's price fluctuations have remained within a narrow range. Ethereum has fully recovered from the impact of the hack incident, reaching an intraday high of $2,840 in early trading on Monday, but was unable to maintain this level and fell back to $2,759 as of the time of writing.
In summary, this week's economic data and industry dynamics may have multiple impacts on the cryptocurrency market. From GDP and PCE inflation data to Senate hearings and miner income reports, market participants need to closely monitor these events to respond to potential market volatility. Although the market has been relatively stable recently, the data releases in the coming days may become key factors in determining market direction.