The United States equities markets rallied sharply last week, ending a three-week losing streak. The S&P 500 rose by 3.65% last week while the Nasdaq Composite soared by 4.14%. In correlation with the equities markets, the overall crypto market cap stands at around US$1.11 trillion - up about 0.2% since yesterday!
The bullish momentum in the stock and cryptocurrency markets are showing signs of a bottoming formation but it may be too early to predict the start of a new sustained bull run.
What you need to know
Ethereum’s highly anticipated merge and Cardano’s Vasil hard fork are scheduled in the next few days and could heighten volatility in several cryptocurrencies.
Tomorrow, the US Bureau of Labour Statistics will release the Consumer Price Index (CPI) report for August. This will be a crucial one, which will have a significant bearing on US Federal Reserve boss Jerome Powell’s inflation-combatting movements, and the stock markets’ and crypto market’s activity.
According to Forbes, the CPI report is unlikely to deter the Fed from hiking interest rates in September by around 50 to 75bps at its next FOMC meeting. If the CPI is lower than that of July (8.5%), it’ll be reasonable to imagine a continued stock and crypto rally in the short term this week.