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4 Factors That Could Influence Cryptocurrency Markets Over the Next Seven Days

Cryptocurrency markets ended the weekend in the red: hopes for a peace agreement between the U.S. and Iran remain very fragile.

According to the Kobeissi Letter, U.S. stock market futures opened lowerinvestors are awaiting details of the negotiations between the U.S. and Iran in Switzerland.

Meanwhile, President Trump has once again toughened his rhetoric, writing on Truth Social on Sunday:

Iran must immediately stop its costly proxies in Lebanon who are causing unrest. If this does not happen, we will strike Iran with another powerful blow, just like last week, only much stronger!!!

The week kicks off on Tuesday with the release of S&Ps global Purchasing Managers Index (PMI) data for June, and on Wednesday, new home sales figures for May will be released.

However, the main focus is on the May Personal Consumption Expenditures (PCE) reportthe Federal Reserves key inflation indicatorwhich will be released on Thursday. LINE_BREAK This data will follow last weeks FOMC meeting, where central bank officials left interest rates unchanged but signaled that monetary policy would now focus more heavily on combating inflation.

If the PCE figure comes in higher than expectedwhich is likely due to rising energy pricesmarkets may revise their expectations for the number of rate cuts, and risk assets could come under pressure. LINE_BREAK Is Bitcoin (and the whole world) facing a threat after Trump warned Iran of new strikes?

The June FOMC meeting, where half of the committee members leaned toward tightening policy, triggered a hawkish surge in the markets, Bloomberg analysts noted.

Although Warsh did not present his forecast for the dot plot, his tone at the press conference struck us as clearly hawkish. High PCE inflation is likely to reinforce this hawkish signal.

According to the CME Fed Watch tool, the current probability of a rate hike at the next Fed meeting in late July is about 40% .

New economic data will be released on Thursdaythe U.S. GDP report for the first quarter, which will shed light on the pace of economic growth.

On Friday, the University of Michigans Consumer Sentiment Index for June and inflation expectations data are expected to be released, wrapping up a week packed with economic reports.”,”detected_source_language”:”RU