Wall Street braces for earnings and retail sales reports – now what about crypto?

Source Cryptopolitan

Wall Street is getting ready for a big week as corporate earnings reports and retail sales data take center stage.

Investors are hungry for more signs of the U.S. economy’s strength after recent gains in equity markets. The benchmark S&P 500 is set to post its fifth straight weekly gain, soaring over 21% this year.

While everyone’s waiting to see if traditional markets hold strong, the crypto market, seemingly completely overlooked by mainstream analysts, is just as important to watch.

The question isn’t whether Wall Street is going to react to earnings or retail sales reports. That’s a given. The question is what crypto investors and traders might do next, especially when Bitcoin and Ethereum seem to be sitting tight in consolidation.

The impact of earnings on stocks

Earnings season is kicking off with giants like American Express, Netflix, United Airlines, and Procter & Gamble lined up to report.

JPMorgan Chase and Wells Fargo have already surpassed expectations, causing their stocks to jump. These reports give an inside look at U.S. consumer spending, which makes up more than two-thirds of the economy.

Crypto markets respond to the same macroeconomic pressures. If consumers aren’t spending, you can bet Bitcoin is going to feel the ripples.

Goldman Sachs lowered recession odds to just 15% after recent employment data. Though job layoffs in the financial and tech sectors, hurricanes in the Southeast, and a brief dockworkers strike have made the consumer environment less predictable.

Over the next two weeks, over 150 companies in the S&P 500 will report their earnings.

What’s happening with Bitcoin?

BTC is trading at $62,622, gaining 0.32% over the last hour. Price has been fluctuating between resistance at $62,700 and support around $62,159.

Short-term trends are bullish, with the price above the 50-hour moving average, which is currently at $62,159. The 200-hour moving average, a longer-term trend indicator, sits just above the price at $62,700.

Wall Street braces for earnings and retail sales reports - now what about crypto?

Volume trends are also showing cautious optimism. The On-Balance Volume, which tracks buying and selling pressure, is rising, suggesting accumulation.

In the Bitcoin derivatives market, trading volume has dropped by 27.50% to $31.28 billion. Open interest, which measures the number of outstanding contracts, has also declined by 1.68% to $34.68 billion.

These declines signal reduced activity, likely due to macroeconomic uncertainty over the earnings reports.

Wall Street braces for earnings and retail sales reports - now what about crypto?

The options market is also seeing less action, with volume dropping by 48.89% to $480.87 million. Still, open interest is holding steady, which means traders are still in their positions, waiting for the next signal.

The long/short ratio on Binance for BTC/USDT is 1.2523, indicating a slight bullish sentiment. In the past 12 hours, $9.80 million in short positions have been liquidated, compared to $6.98 million in longs, catching many bearish traders off guard.

Wall Street volatility bleeds into Ethereum

Ethereum is following a similar path. Its price is currently at $2,459, up 0.14% in the past hour. Ethereum has seen a price spike, hitting $2,462 before pulling back slightly.

Like Bitcoin, Ether is above its 50-hour moving average ($2,434) but just below the 200-hour moving average at $2,458. This suggests a bullish short-term trend but resistance in the longer term.

Ethereum’s OBV is also showing rising buying pressure, supporting the idea of an ongoing accumulation phase.

Wall Street braces for earnings and retail sales reports - now what about crypto?

Its derivatives market volume has dropped by 28.74% to $10.24 billion, with open interest down by 2.36% to $11.38 billion.

The options market tells a similar story, with volume falling by 20.54% to $123.35 million, while open interest is up slightly by 0.60% to $4.79 billion.

The long/short ratio for ETH/USDT on Binance is 2.2658, showing a strong bullish bias. On OKX, the ratio is even higher at 2.54, meaning that Ethereum traders are betting heavily on a breakout.

Wall Street braces for earnings and retail sales reports - now what about crypto?

Liquidations data shows that Ethereum bears are getting squeezed. In the past hour, $653.41K worth of short positions were liquidated, compared to only $663.43K in longs.

So yes. Wall Street’s focus is clear — earnings and retail sales — but crypto traders are playing it cool. Everyone’s watching.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin CME gaps at $35,000, $27,000 and $21,000, which one gets filled first?Prioritize filling the $27,000 gap and even try higher.
Author  FXStreet
Aug 21, 2023
Prioritize filling the $27,000 gap and even try higher.
placeholder
Natural Gas sinks to pivotal level as China’s demand slumpsNatural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
Author  FXStreet
Jul 01, Mon
Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
placeholder
Nvidia vs. Broadcom: Which Is the Better AI Chip Stock to Own in 2025?When it came to artificial intelligence (AI) infrastructure in 2024, Nvidia (NASDAQ: NVDA) reigned supreme.
Author  The Motley Fool
Dec 19, Thu
When it came to artificial intelligence (AI) infrastructure in 2024, Nvidia (NASDAQ: NVDA) reigned supreme.
placeholder
American Express: Buy, Sell, or Hold?American Express (NYSE: AXP) shares have been on an absolute tear. In the past 14 months, they have catapulted 100% higher (as of Dec. 16), consistently hitting fresh all-time high
Author  The Motley Fool
23 hours ago
American Express (NYSE: AXP) shares have been on an absolute tear. In the past 14 months, they have catapulted 100% higher (as of Dec. 16), consistently hitting fresh all-time high
placeholder
US Dollar hits fresh two-year high ahead of PCE inflationThe US Dollar (USD) retreats slightly on Friday, with the DXY Index trading at around 108.20 after eking out another fresh two-year high of 108.55 during the Asian-Pacific trading session. The move was supported by rising US Treasury yields, widening
Author  FXStreet
23 hours ago
The US Dollar (USD) retreats slightly on Friday, with the DXY Index trading at around 108.20 after eking out another fresh two-year high of 108.55 during the Asian-Pacific trading session. The move was supported by rising US Treasury yields, widening
goTop
quote