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Key US Economic Events to Watch This Week

Published

2 days ago

October 14, 2024

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Four key US economic events are expected to capture the attention of cryptocurrency markets this week. Economists, traders, and investors across the financial sector are closely monitoring these developments to gauge the health of the American economy.

Bitcoin (BTC) remains steady above $63,900, signaling a positive outlook for the leading cryptocurrency. With October off to a strong start, the fourth quarter (Q4) is shaping up to be favorable for Bitcoin.

Initial Jobless Claims

Thursday’s initial jobless claims report will offer insights into the US labor market’s condition. While the job market has softened, unemployment rates remain low. Typically, strong job growth and rising wages signal a tightening labor market, which can increase inflationary pressures.

With jobs data in focus, the Federal Reserve is weighing its next interest rate move, considering its mandate to balance employment and price stability.

High initial jobless claims may indicate economic hardship and a weakening labor market. As a result, reduced consumer spending and investment in stocks and bonds could push some investors to explore cryptocurrencies.

US Retail Sales

Retail sales will also be a key focus of US economic data releases this week. Almost similar to the employment data, this report will provide investors and economists with an important look at inflation and give insights into consumers’ ability and willingness to spend money.

The Thursday data will report on September’s retail sales, after rising by a meager 0.1% in August, or 0.2% with motor vehicles and gasoline exempted. This was better than expected, considering total July sales rose significantly by 1.1%, as did e-commerce sales, which picked up by 1.4%.

Economists expect retail sales to rise by 0.7% month-over-month (MoM), which would be significant following market participants’ concerns over the economy heading for a recession or a soft landing. Retail sales accelerating considerably could shift further toward a ‘no landing’ or even re-acceleration.

As regards crypto implication, strong retail sales figures would suggest robust consumer spending, signifying a healthy economy. Increased retail sales could signal confidence among consumers, potentially leading to increased investment in riskier assets like Bitcoin. Conversely, weak retail sales may indicate economic softness, prompting investors to seek alternative investment opportunities.

Industrial Production

Industrial production data provides insights into the strength of the manufacturing sector, which is a key driver of economic growth. The Federal Reserve’s monthly index of this data and the related capacity indexes and utilization rates would cover manufacturing, mining, and electric and gas utilities.

Notably, the industrial sector, together with construction, accounts for the bulk of the variation in US national. Based on this, the industrial production data would reflect structural developments in the economy.

Strong industrial production data would suggest a positive sign for the overall economy. This would potentially boost investor sentiment across various asset classes, including Bitcoin and crypto in general.

Corporate Earnings

Several corporate earnings reports are scheduled this week, starting Tuesday, October 15. Among them are Bank of America (BAC), Citigroup (C), and Charles Schwab (SCHW). These data releases would provide a glimpse into the financial health of companies across different sectors in the US.

Strong corporate earnings often translate to positive market reactions, driving up stock prices and investor confidence. This optimistic market sentiment can spill over to the cryptocurrency market as investors seek higher returns in a buoyant economic environment.

The interplay between these traditional economic indicators and the crypto markets can be complex and multifaceted. A generally positive economic outlook, as signaled by strong retail sales, declining jobless claims, strong industrial production, and upbeat corporate earnings, could potentially fuel investor interest in cryptocurrencies as a form of diversification or risk mitigation.

BTC Price Performance Ahead of US Economic Events. Source: BeInCrypto

Conversely, any negative surprises in these economic data points may lead to heightened volatility and risk aversion in both traditional and digital asset markets. Investors should closely monitor these economic indicators alongside developments in the crypto space this week to make informed decisions and effectively navigate potential opportunities and risks.

As crypto braces for volatility due to these events, Bitcoin (BTC) is trading for $63,882 as of this writing, up by a modest 1.59% since Monday’s session opened.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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XRP Price Nearing Breakout: Can It Finally Push Higher?

Published

58 mins ago

October 16, 2024

admin

XRP price is moving higher above the $0.5400 zone. The price must settle above the $0.5550 resistance to set the pace for a larger increase.

XRP price is attempting a fresh increase above the $0.540 zone.
The price is now trading above $0.5410 and the 100-hourly Simple Moving Average.
There is a key bullish trend line forming with support at $0.5395 on the hourly chart of the XRP/USD pair (data source from Kraken).
The pair could gain bullish momentum if it clears the $0.550 and $0.5550 resistance levels.

XRP Price Revisits Resistance

XRP price started a downside correction from the $0.5550 resistance zone. There was a move below the $0.5420 support. However, the bulls were active at $0.5320. A low was formed at $0.5317 and the price is now rising like Bitcoin and Ethereum.

The price climbed above the $0.5380 and $0.540 resistance levels. There was a move above the 50% Fib retracement level of the downward move from the $0.5550 swing high to the $0.5317 low.

The price is now trading above $0.540 and the 100-hourly Simple Moving Average. There is also a key bullish trend line forming with support at $0.5395 on the hourly chart of the XRP/USD pair.

On the upside, the price might face resistance near the $0.5460 level or the 61.8% Fib retracement level of the downward move from the $0.5550 swing high to the $0.5317 low. The first major resistance is near the $0.5500 level. The next key resistance could be $0.5550.

A clear move above the $0.5550 resistance might send the price toward the $0.5650 resistance. Any more gains might send the price toward the $0.5800 resistance or even $0.5880 in the near term. The next major hurdle might be $0.6000.

Another Decline?

If XRP fails to clear the $0.550 resistance zone, it could start another decline. Initial support on the downside is near the $0.540 level and the trend line. The next major support is near the $0.5320 level.

If there is a downside break and a close below the $0.5320 level, the price might continue to decline toward the $0.5210 support in the near term. The next major support sits near the $0.5050 zone.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now above the 50 level.

Major Support Levels – $0.5400 and $0.5320.

Major Resistance Levels – $0.5500 and $0.5550.

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Market

Why the SEC Is Suing Over Meme Coin Fraud

Published

2 hours ago

October 16, 2024

admin

The US Securities and Exchange Commission (SEC) filed a lawsuit against an individual connected with the issuance and promotion of the Saitama Inu (SAITAMA), according to a complaint released recently.

This legal action follows a series of joint enforcement initiatives launched earlier this month. The SEC, the Federal Bureau of Investigation (FBI), and the Department of Justice (DOJ) charged multiple cryptocurrency entities suspected of fraud and market manipulation.

SEC Pushes Misleading Investors and Pump-and-Dump Allegations

The complaint, filed in the US District Court, alleges that the defendant, Vy Pham, illegally sold unregistered securities in the form of digital tokens. It also accuses Pham of misleading investors and promoting Saitama Inu through deceptive tactics. Some of the cited deceptive practices include fraudulent statements about the coin’s value and prospects.

According to the SEC, Pham leveraged social media channels to promote the meme coin. He artificially inflated the value of Saitama Inu and ultimately profited at the expense of unsuspecting investors. Advertising a strong community backing and future utility, Pham reportedly promised substantial returns to investors.

However, the SEC contends that Pham’s promotional efforts were part of a “pump-and-dump” scheme, a form of securities fraud. In such schemes, the promoter hypes up the asset to boost its price, only to offload its holdings at inflated rates. This leaves other investors with significant losses as the token value crashes.

“Pham misled investors by making grand promises of wealth, and as a result, many individuals lost significant amounts of money,” said Gurbir S. Grewal, Director of the SEC’s Enforcement Division, in a statement.

This lawsuit is part of a wider crackdown initiated on October 9 by the SEC, FBI, and DOJ against four cryptocurrency entities. Citing Gotbit Consulting, ZM Quant Investment, and CLS Global, the coordinated enforcement action centers on allegations of fraudulent activities and market manipulation. These are tactics used to deceive investors by fabricating market demand.

Potential Implications for the Future of Meme Coins

Meme coins, unlike Bitcoin or Ethereum, typically lack intrinsic utility or clear use cases, making them highly volatile. They are often subject to rapid price fluctuations, driven by social media trends or endorsements from influencers.

This lawsuit reflects the SEC’s ongoing efforts to ensure compliance with securities laws in the growing cryptocurrency market. The SEC is committed to fighting against fraud, misleading information, and market manipulation. This is as more retail investors flock to digital assets.

“The cryptocurrency market continues to grow, and with it, the risks to investors. The SEC will continue to take action against those who violate securities laws, no matter how new or innovative the assets may be,” Grewal added.

Meme coins can be entertaining and lucrative for some. However, they also come with significant risks, especially when manipulation is in play. The outcome of the SEC’s case against Pham could have far-reaching implications for the future of meme coins.

The court ruling in favor of the SEC could set a legal precedent, bringing stricter regulations on similar digital assets and their promoters.

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Market

Litecoin (LTC) Jumps 10%: Can the Bulls Fuel a Bigger Rally?

Published

3 hours ago

October 16, 2024

admin

Litecoin price is gaining pace above the $70.00 level against the US Dollar. LTC could continue to rise if it clears the $72.80 resistance zone.

Litecoin is showing positive signs from the $65 support zone against the US Dollar.
The price is now trading above $70 and the 100-hourly Simple Moving Average.
There is a key bullish trend line forming with support at $68.00 on the hourly chart of the LTC/USD pair (data feed from Kraken).
The price is up over 10% and might continue to rise if it clears the $72.80 resistance zone.

Litecoin Price Gains Bullish Momentum

After forming a base above $65, Litecoin started a fresh increase. LTC price broke the $68 and $70 resistance levels to move into a positive zone, like Bitcoin and Ethereum.

The price gained over 10% and even cleared the $72 level. A high was formed at $72.74 and the price is now consolidating gains. It is stable above the 23.6% Fib retracement level of the upward move from the $65.29 swing low to the $72.74 high.

Litecoin is now trading above $70 and the 100 simple moving average (4 hours). There is also a key bullish trend line forming with support at $68.00 on the hourly chart of the LTC/USD pair. The trend line is close to the 61.8% Fib retracement level of the upward move from the $65.29 swing low to the $72.74 high.

On the upside, immediate resistance is near the $72.00 zone. The next major resistance is near the $72.80 level. If there is a clear break above the $72.80 resistance, the price could start another strong increase. In the stated case, the price is likely to continue higher toward the $75.50 and $78.00 levels. Any more gains might send LTC’s price toward the $80.00 resistance zone.

Are Dips Supported in LTC?

If Litecoin price fails to clear the $72 resistance level, there could be a downside correction. Initial support on the downside is near the $71.00 level.

The next major support is forming near the $69.00 level, below which there is a risk of a move toward the $67.50 support. Any further losses may perhaps send the price toward the $65.00 support.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for LTC/USD is above the 60 level.

Major Support Levels – $71.00 followed by $67.50.

Major Resistance Levels – $72.80 and $80.00.

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