- Last week, Bitcoin and crypto prices closed a month and quarter that could be a positive sign for July.
- This week, there are several important events planned that could shape market sentiment and influence the direction of Bitcoin and crypto prices.
- The most important event of the week for both traditional markets and the crypto space could be the release of the June US Employment Report.
A week has started with economic developments and announcements that could affect the prices of Bitcoin and cryptocurrencies; Investors should closely monitor the developments!
This Week Could Be Important for Crypto Prices
Last week, Bitcoin and crypto prices closed a month and quarter that could be a positive sign for July. As the market continues to attract the attention of investors worldwide and evolve, it is important to pay attention to macroeconomic events that could significantly impact Bitcoin and other crypto prices.
This week, there are several important events planned that could shape market sentiment and influence the direction of Bitcoin and crypto prices. Let’s take a closer look at what to expect throughout the week. The week starts with the release of the ISM Manufacturing data at 14:00 UTC (17:00 Turkey time). This data provides information about the performance of the manufacturing sector in the United States and is an important component of the overall economy.
A positive data indicates a strong manufacturing sector and usually leads to increased business investments and consumer spending. This can also support the traditional finance sector as investors gain confidence in economic growth expectations. BTC and cryptocurrencies can also be affected by this.
On Tuesday, July 4th, the United States markets will be closed due to Independence Day. It is likely to be a day without significant events, and it could be a relatively quiet day for both traditional and crypto markets.
On Wednesday, July 5th at 18:00 UTC (21:00 Turkey time), attention will turn to the Federal Open Market Committee (FOMC) Meeting Minutes. These minutes provide a detailed account of the discussions and decisions made at the latest FOMC meeting. Investors will closely analyze the minutes and look for any indications of the Federal Reserve’s stance on monetary policy, interest rates, and inflation.
Any indication of potential changes in monetary policy can affect both traditional markets and cryptocurrencies. For example, if the minutes suggest a more hawkish stance, implying that monetary policy could be tightened, it could create selling pressure for both stocks and Bitcoin and cryptocurrencies.
However, negative surprises are unlikely. Jerome Powell already mentioned last week that there will likely be a need for two more interest rate hikes this year to bring down inflation. So, a warning has already been given to the market. The Federal Reserve is currently pausing to assess the effects of three major bank failures. However, to further reduce inflation, the Fed wants to see a weakening labor market (higher unemployment rates).
Labor Market Data to Be Released on Wednesday
Interestingly, Thursday, July 6th, is a day when important reports on the labor market and economic activity come together. Purchasing Managers’ Index (PMI) data will be released, providing information about the performance of the services sector.
In addition, the Jobless Claims report will present an indicator that measures the health of the labor market by revealing the number of individuals applying for unemployment benefits. Lower jobless claims are associated with a stronger labor market and are generally linked to increased consumer spending and economic growth.
Positive jobless claims data can lead to an increase in stock market performance and optimism among investors in the traditional finance sector. However, it may not be that easy. The long-standing belief of the Fed is that strong hiring and rising wages often trigger high inflation. Therefore, they want to see higher unemployment rates. If the labor market remains strong, the possibility of another interest rate hike increases.
Another important report is the Job Openings and Labor Turnover Survey (JOLTS). This data provides information about the dynamics of the labor market and indicates whether employers are willing to hire new employees. High job openings and increased hiring activity indicate a strong labor market and overall economic growth.
The most important event of the week for both traditional markets and the crypto space could be the release of the June US Employment Report, as this report could be one of the most important factors influencing the Fed’s next interest rate decision on July 26th. This report includes data such as non-farm payrolls, unemployment rates, and wage growth.
ETF Developments
Among the biggest influencers of Bitcoin and cryptocurrencies this week, it can be said that any news about the BlackRock spot ETF could have an impact. After Fidelity, ARK, and others had their ETF applications deemed “inadequate” by the US Securities and Exchange Commission last week, they refiled their applications, but BlackRock has not yet refiled or made any amendments to its application.
Many market participants believe that the world’s largest asset manager knows something that others don’t through its close relationship with regulators. In this context, it can be said that ETF developments could once again have a significant impact.
