tl;dr
The crypto markets have been rallying, but are now cooling, with most digital assets correcting. The economic backdrop and expected policy changes under the Trump administration support an optimistic outlook for crypto and tech stocks, particularly those associated with artificial intelligence. Econ...
Crypto markets cooling with digital assets correcting - Economic events from Nov. 25 to 29: Consumer Confidence, FOMC meeting, GDP and PCE inflation data - Traditional markets closed for Thanksgiving, crypto markets unaffected
The crypto markets have been rallying, but are now cooling, with most digital assets correcting. The economic backdrop and expected policy changes under the Trump administration support an optimistic outlook for crypto and tech stocks, particularly those associated with artificial intelligence. Economic events from November 25 to 29 include the release of the November Consumer Confidence Index report, the Federal Open Market Committee meeting, and the Q3 2024 GDP Growth Annualized report. Traditional markets will be closed for Thanksgiving on Thursday, but crypto markets will remain active. Total crypto market capitalization has dropped 3% from its record high, with Bitcoin and Ethereum experiencing dips. However, Near Protocol (NEAR) has seen a 7.6% increase.
Crypto markets have been rallying for the past several days, however, things are starting to cool, with most digital assets correcting as this week begins. The robust economic backdrop, coupled with the expected policy changes under Donald Trump’s administration, supports an optimistic outlook for crypto and tech stocks, especially assets associated with artificial intelligence.
ECONOMIC EVENTS NOV. 25 TO 29
Tuesday will see the release of the November Consumer Confidence Index report, which conveys the level of confidence that consumers have in economic activity, affecting spending, which has a direct impact on GDP. The Federal Open Market Committee will meet on Tuesday to release the minutes from its most recent policy meeting on Nov. 6-7. The Fed cut its key interest rate by a quarter-point in response to the steady decline in inflation a fortnight ago. Wednesday will see the Q3 2024 GDP Growth Annualized report, which provides an updated picture of the change in GDP. Economists project that the second estimate will confirm the 2.8% annualized rate of growth, which is a slight deceleration from Q2’s 3% increase. October’s Core Personal Consumption Expenditures (PCE) report is also expected on Wednesday. This data reflects the average amount of money consumers spend monthly and is used by central bank policymakers as their primary inflation gauge.
Traditional markets will be closed in the United States on Thursday for the Thanksgiving holiday, crypto doesn’t have holidays.
CRYPTO MARKETS COOLING
Total crypto market capitalization has dropped 3% from its record high over the weekend in a dip to $3.44 trillion during the Monday morning Asian trading session. More than a trillion dollars has entered the crypto space since the US presidential election earlier this month. Bitcoin has dipped 2.5% since its Nov. 22 all-time high of $99,645, falling below $96,000 briefly on Sunday before recovering to trade at around $98,000 on Monday morning. Ethereum hit resistance just above $3,400 again and has started to retreat marginally, dipping to $3,400 over the weekend. The altcoins are mostly in the red at the moment, following solid gains over the past week. The exception is Near Protocol (NEAR), which is up 7.6% on the day, topping $7 for the first time since June.