Three Things Crypto Investors Should Watch This Week

Crypto markets remained flat over the weekend following a week of heavy losses that saw a further $140 billion leave the space. Military action in the Middle East resumed with the US conducting strikes on Iranian military targets at multiple locations in response to Iran’s drone attack on a commercial ship.

Meanwhile, the TradFi fear and greed index is now down to 24.8, the lowest since early April, reported the Kobeissi Letter. The week ahead is heavy with labor market data, which could further influence the Federal Reserve’s monetary policy.

Economic Events June 29 to July 3

Monday will see the market’s reaction to the resumption of military action, and crypto is already in the red as Bitcoin fails to hold $60,000.

The economic data begins on Tuesday with May JOLTs Job Openings data and June’s CB Consumer Confidence report. These are followed on Wednesday by June’s ISM Manufacturing PMI data, which provides insights into industrial sector health and business conditions.

The big report of the week is the June Jobs report, which comes out on Thursday and may shape the direction of rates and markets, possibly into September, as it is the only employment report the Fed receives before its July meeting.

Continued labor market weakness would validate stagflation concerns about supporting growth versus containing prices, reported BarChart.

A hot report would result in higher rates priced in, which makes conditions tougher for risk assets such as crypto. However, the market is priced for a soft number, so the bigger danger would be a surprise to the upside.

Crypto Market Outlook

The overall outlook is not good, with negative sentiment increasing in the depths of a crypto winter. Total capitalization has fallen to its lowest level since September 2024 at $2.13 trillion, with Bitcoin leading losses as capitulation continues.

BTC lost 1.5% on the day, falling back to $59,000 during the Monday morning trading session in Asia before recovering slightly. It is currently hovering at critical support; if lost, it could trigger a rapid drop to the realized price of around $53,000, a historical bear market bottom.

ETH is already at its multi-year bear market bottom, struggling to make any moves above $1,570 and weakening by the hour.

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