The crypto economy has exploded by $623 billion in just seven months! Bitcoin’s market value surged by over $20,000, while Ethereum jumped more than $470. However, the crypto market is on high alert as it awaits several key events, including releasing the US Personal Consumption Expenditures (PCE) inflation data and remarks from Federal Reserve officials. These events are anticipated to significantly influence market sentiment and could potentially impact the Federal Reserve’s upcoming decisions regarding rate cuts.
What lies ahead for you? Let’s discover.
These Events Might Decide Market’s Next Move
Recent comments from Federal Reserve officials, including Fed Chair Jerome Powell, have fueled optimism in the market, suggesting a possible softening of monetary policy. This dovish stance has led to heightened expectations of a rate cut in September, which has already spurred a robust rally in the crypto market.
Continuing the bullish streak, Bitcoin surpassed $65,000 and Ethereum approached $2,800 over the weekend. San Francisco Fed President Mary Daly and Atlanta Fed President Raphael Bostic’s remarks are expected to provide key clues, but the market remains in fear. Any hint of hawkishness might cause a selloff in the financial and crypto markets.
US PCE Inflation Data: A Key Indicator
The upcoming US PCE inflation figures are crucial. Market estimates predict a slight increase to 0.2% for July, up from 0.1% in June. The Core PCE is expected to remain steady at 0.2% every month but could see a year-over-year increase to 2.7%.
These figures will be closely watched as they will influence the Federal Reserve’s decision-making process, particularly concerning the potential rate cut in September. A higher-than-expected inflation figure could dampen the recent bullish sentiment in the crypto market.
Revised GDP Data: Another Critical Event
Alongside the PCE data, the second revision of the Q2 US GDP data, scheduled for release on August 29, will also be a key focus. This data could provide further insights into the US’s overall economic health and may have significant implications for the stock and crypto markets.
Current Market Outlook
Recent increases in the crypto market are fueled by Fed dovishness. However, markets are cautious ahead of PCE data and Fed remarks. These occurrences could strengthen the rally or cause instability, emphasizing the significance of due research in the current market.
Crypto’s Fate Hinges Political Decisions
Politics will play a crucial role in the long term, but before that, the Fed’s September rate cut decision might cause short-term volatility. So far, only Donald Trump has openly embraced crypto, while others like Kamala Harris have taken a diplomatic stance. Whatever the future holds, crypto will make some major moves this year.
What are your predictions for the crypto market after the September event?
