Financial experts predict that the economic data calendar in the United States this week could have a positive impact on the cryptocurrency market. As a result, the overall market cap of cryptocurrencies has increased by 8% in the last 24 hours, with Solana and Cardano leading the way as the top altcoins.
The crypto market has experienced a general surge of 8%, pushing the total market capitalization to $2.37 trillion. This surge was attributed to rumors that the Central Bank of Japan had abandoned its rate hike decisions. During this period, Solana (SOL) saw a 5% increase, reaching $167, while Cardano (ADA) gained 4% in value. Despite these gains, Bitcoin (BTC) continues to dominate the market with a total share of 57%.
Experts believe that the current bullish momentum in the crypto market could continue due to three important economic events taking place in the US. These events are expected to fuel further growth.
The first event is the publication of the US Manufacturing PMI data on Thursday, October 24. This data will provide insights into the status of the manufacturing sector and its impact on the crypto market. Economists predict a slight recovery in this sector, with a reading of 47.5, slightly higher than the previous reading of 47.3. A reading below 50 indicates a negative outlook for manufacturers, and historically, this index has been negative 22 out of the last 23 months. If the PMI reading exceeds 50, it could lead to an expansion in the manufacturing industry and an increase in crypto interest as a hedge against inflation.
The second event is the US Unemployment Claim. Recent data shows that the national unemployment rate in the US reached 4.1% in September 2024, and in October, it reached a level last recorded in August 2023. The Initial claims for state unemployment benefits have also reduced, falling to 241,000. This lower-than-expected figure could affect sentiment towards rate cuts by the Federal Reserve. A lower claim indicates a strengthening economy, which would boost investor confidence and increase demand for riskier assets like Bitcoin.
The third event is the US Services PMI, which is expected to decline slightly from 55.2 to 55. A positive sentiment in this sector could increase demand for Bitcoin and lead to a significant rally in the overall market.
Overall, these economic events are expected to bring volatility to the crypto market and potentially favor investors. It is important to note that while this week may be light in terms of key reports, next week will make up for it with important employment reports and other significant announcements.