A packed schedule awaits on the United States economic calendar as markets continue to react to the ongoing conflict in the Middle East and concerns over global fuel shortages.
Crypto markets started the week on a negative note in Asia, with fear, uncertainty, and doubt returning to the space. At the same time, United States stock futures declined at the open as investors responded to Donald Trump issuing a 48 hour deadline for Iran to reopen the Strait of Hormuz.
There is also growing discussion about possible interest rate increases as inflation risks rise due to higher oil prices and supply constraints. While WTI crude dropped below 100 dollars, Brent crude remained elevated at around 112 dollars per barrel.
Key Economic Events This Week
The March purchasing managers index report is set for release on Wednesday. This data will provide insight into how the conflict has affected business activity and market sentiment. Economists at Deutsche Bank noted that it will be one of the first indicators reflecting economic conditions since the conflict began.
On Thursday, the initial jobless claims report will offer a snapshot of labor market health, a key factor guiding decisions by the Federal Reserve. According to James Knightley from ING, the Federal Reserve is still more likely to consider rate cuts rather than increases.
Friday will bring reports on consumer sentiment and inflation expectations for March, providing further insight into overall economic conditions. Ryan Sweet of Oxford Economics highlighted that rising fuel prices are likely to weigh heavily on consumers. He explained that even a small increase in gasoline prices can significantly reduce consumer spending over time.
Rising inflation and reduced consumer spending typically create pressure on high risk assets such as cryptocurrencies.
Crypto Markets Under Pressure
This trend is already visible as the broader crypto market continues to decline, with most digital assets erasing gains made during last week’s rally. Total market capitalization has fallen by about 1.3 percent to 2.42 trillion dollars during Monday morning trading in Asia.
Bitcoin dropped below 68,000 dollars on Sunday before recovering slightly above that level by Monday. However, ongoing economic pressure could push prices lower in the near term.
Ethereum has also shown weakness, falling to around 2,033 dollars before a modest rebound. It may struggle to stay above the 2,000 dollar level this week.
Other major cryptocurrencies are also in decline, with notable losses seen in XRP, Cardano, Hyperliquid, and Stellar.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
