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3 Factors That Could Affect Crypto Markets in the Coming Week

Over the weekend, the cryptocurrency market experienced a period of relative calm, stabilizing after a significant $200 billion decline on Friday, triggered by escalating tensions following an attack by Israel on Iran.

The consumer sentiment index saw a rise last week, marking its first uptick in six months, supported by less alarming consumer and producer inflation figures, which boosted investor confidence.

However, the intensification of conflict on Friday led to declines in both stocks and cryptocurrencies, prompting investors to shift their assets towards cash and gold. In contrast, oil prices surged by nearly 5% as trading resumed, indicating that market volatility remains a concern.

Upcoming Economic Events (June 16 to 20)

Expect market reactions on Monday morning due to the ongoing violence from the weekend, with reports indicating that Iran has informed mediators from Qatar and Oman that it is unwilling to discuss a ceasefire while facing Israeli attacks.

The Retail Sales report for May is set to be released on Tuesday, shedding light on consumer expenditure across durable and non-durable goods. Retail Sales figures are a crucial economic indicator, offering perspective on inflationary trends driven by consumer demand.

On Tuesday, the May Industrial Production report will also be published. This data, provided by the Federal Reserve, reflects the production levels within U.S. industries such as manufacturing, mining, and utilities, typically having a minimal effect on market prices.

Wednesday will feature a pivotal decision from the Federal Reserve regarding interest rates, with futures markets predicting a 96.7% likelihood that rates will hold steady at 4.25-4.50% during this meeting.

Drew Matus, chief market strategist at MetLife Investment Management, cautioned, “If rates are lowered prematurely without clear evidence of economic weakening, there’s a risk of unintentionally heightening inflation expectations.”

On Thursday, U.S. markets will be closed in observance of Juneteenth, a federal holiday honoring the emancipation of enslaved African Americans.

Crypto Market Analysis

The overall market capitalization has remained stable over the weekend, hovering around $3.4 trillion, with minimal changes in the prices of digital assets in the last 24 hours.

Bitcoin fell below $105,000 late Sunday but managed to recover during Monday’s Asian trading session, surpassing the $106,000 mark once again. Ethereum has seen a 1.8% increase as it approaches the $2,600 threshold.

Currently, altcoins are exhibiting strong performance, with notable daily price movements observed in Solana, Hyperliquid, Sui, and Bitcoin Cash.

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