Cryptocurrency market It recorded a strong rise during the week as expectations increased that the US Federal Reserve (Fed) would cut interest rates in September. Bitcoin (BTC) approached the $65,000 level over the weekend, Ethereum (ETH) rose to $2,800. The market’s eyes are now on the upcoming Personal Consumption Expenditures (PCE) data and other important developments that will provide more clues about inflation pressures in the US.
Fed Officials’ Statements Will Shape Market Sentiment
Recent statements from Fed officials have increased optimism in the market. Fed Chair Jerome PowellStatements from officials, including , indicated that the Fed was moving towards a softer policy stance. The dovish tone from officials reinforced expectations that interest rates would be cut at the September meeting and supported the recent rally in the cryptocurrency market. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
This week, the market has been receiving a lot of attention from Fed officials future awaiting further statements. On Monday, San Francisco Fed President Mary DalyThe statements he will make in a television interview are eagerly awaited. Then on Wednesday, Atlanta Fed President Raphael BosticThe statements to be made by could be effective in determining the direction of the market. The market expects these statements from Fed officials to be in line with previous dovish comments. On the other hand, in the opposite case, a particularly hawkish statement could increase concerns in the market and trigger a wave of selling.
Markets Await US PCE Inflation and Revised GDP Data
Markets will be looking forward to the new week’s release of the US inflation uncertainty PCE data is pending. According to market estimates, July US PCE inflation data will rise to 0.2 percent from 0.1 percent the previous month. It is expected to remain steady at 2.5 percent on an annual basis. At the same time, core pce The data is expected to remain constant at 0.2 percent on a monthly basis but increase from 2.6 percent to 2.7 percent on an annual basis. If the inflation data is above expectations, it could demoralize the markets.
Although Fed Chair Powell triggered a rally in Bitcoin and Ethereum by hinting at the possibility of a rate cut in September, Powell also stated that they will look at upcoming data before making this decision. Therefore, the PCE data to be announced will play a key role in determining the Fed’s stance on interest rate policy.
On the other hand, the US in the second quarter Gross domestic product The second revision of the (GDP) data will be released on Thursday. The data will provide important clues about the health of the US economy, which is why stocks and cryptocurrency market is expected to have an impact on.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
