Crypto markets remained flat over the weekend, with total capitalization near $2.3 trillion and Bitcoin hovering around $64,700. A relatively light US economic calendar this week includes jobless claims and S&P PMI data, while the Federal Reserve is widely expected to hold rates steady at its July 29 meeting. Middle East military action continues, pushing crude oil above $90 per barrel. Major tech earnings from Alphabet and Tesla are also due. Bitcoin is range-bound between $62,000 support and $65,000 resistance, with Ethereum near $1,870. The disinflationary trend appears intact, according to one analyst, reducing the likelihood of a rate hike.
Crypto markets traded with low volatility over the weekend, and total capitalization held near $2.3 trillion. Military action in the Middle East continued, with the US Central Command reporting a new wave of strikes against Iran for the ninth consecutive night.
“The strikes will continue degrading Iranian military capabilities used to attack commercial vessels and civilian mariners transiting the Strait of Hormuz,” it stated. Crude oil prices jumped, with WTI hitting $85 and Brent topping $90, while US stocks cooled last week as inflationary pressures returned.
No economic reports are due Monday or Tuesday. Weekly jobless claims are out Thursday, and Friday brings the S&P Purchasing Manager’s Index (PMI) for manufacturing and services. This week’s data will signal whether the economy remains robust following last week’s below-forecast CPI inflation reports.
“It appears that the disinflationary trend that began in 2023 has indeed remained intact,” Elmar Voelker, analyst at LBBW, said in a note, according to the WSJ. “Given this context, there is little to suggest that US monetary policymakers will decide to raise the benchmark interest rate at their next meeting.”
The CME Fed Watch Tool predicts an 85.6% probability that rates will remain unchanged during the central bank’s next meeting on July 29. This week also brings big tech earnings, with Alphabet (Google) and Tesla releasing second-quarter figures.
Bitcoin hovered around $64,700 and remained tightly range-bound between support at $62,000 and resistance just above $65,000. Ethereum prices did little, hovering around $1,870 but not giving up recent gains. Bitcoin closed another weekly candle above the 200-week moving average, its long-term trend indicator.
“To really get this interesting, you want to see a strong push higher now to retrace that last leg down and get back above the Weekly 200 EMA,” said analyst ‘Daan’. “Until then, we’re just caught in this $60K choppy price range.”
