Key Economic Events To Monitor In Crypto This Week

Several major macroeconomic events are expected to influence the cryptocurrency market’s trajectory this week.

The first economic event of the week is Wednesday’s Federal Open Market Committee (FOMC) meeting. During the FOMC meeting, the minutes from July’s meeting and policy decisions will be discussed. Raphael Bostic, President of the Federal Reserve Bank of Atlanta and a 2024 voting member of the FOMC, will deliver a speech. Market participants are likely to closely watch his remarks for any indications of the Federal Reserve’s future monetary policy direction.

On Thursday, 22 August 2024, the Federal Reserve will release the minutes from its recent monetary policy meeting. It may offer detailed insights into the discussions that shaped the Fed’s latest policy decisions. It may also have significant implications for the financial markets, including the crypto sector.

Later that day, the US Department of Labor will report the initial jobless claims for the week ending 17 August 2024. This data serves as a critical indicator of the labor market’s health and could influence market sentiment and economic forecasts.

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Powell To Deliver A Speech On Friday

Another key economic event this week is Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole Economic Symposium, which is set to take place on Friday, 23 August 2024.

Powell’s address is highly anticipated, as it could set the tone for market expectations regarding interest rates and broader economic policy. His remarks may provide clarity on the potential for a rate reduction in September.

Notably, August’s S&P Global Manufacturing and Services PMI reports is set to release on Thursday and will provide insight into business conditions in the US manufacturing and services sectors, which is representative of overall economic conditions.

Moreover, the release of July’s Existing Home Sales data on Thursday and New Home Sales data on Friday will be closely watched by market participants, including those in the cryptocurrency space. These reports will provide insights into the health of the US housing market, which can influence broader economic sentiment.

A strong showing in home sales could indicate economic resilience, potentially leading to increased confidence in traditional markets, and a shift of capital away from riskier assets like cryptocurrencies.

Key Events This Week:

1. Fed Meeting Minutes – Wednesday

2. S&P Global Services PMI data – Thursday

3. July Existing Home Sales data – Thursday

4. July New Home Sales data – Friday

5. Fed Chair Powell Speaks – Friday

6. Total of 4 Fed speaker events this week

The S&P 500…

— The Kobeissi Letter (@KobeissiLetter) August 18, 2024

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Bitcoin Price Stalls

On Monday, Bitcoin failed to maintain its position above the $60k mark.  Resulting in a 1.7% drop over the past 24 hours, Bitcoin’s price is now below $59k.

The decline led to $77 million in liquidated derivatives positions, including $50 million in long trades.

The Fear & Greed Index shows “fear,” indicating that the market sentiment is generally negative. Investors are feeling uncertain or apprehensive about the future. This often results in reduced buying activity and increased volatility, as traders may be more cautious or risk-averse.

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.