The cryptocurrency market is bracing for a series of significant news events this week that could influence both traditional financial markets and digital assets.
Investors will be particularly attentive to the release of the Federal Open Market Committee (FOMC) minutes and to Federal Reserve Chairman Jerome Powell’s speech at the annual Jackson Hole Economic Symposium. These events should provide crucial information on the outlook for the Federal Reserve’s monetary policy.
This week begins on Monday, August 19, with a speech by Fed Governor Christopher Waller, followed by remarks by Atlanta Fed President Raphael Bostic and Fed Vice Chair for Supervision Michael Barr on Tuesday, August 20, according to Forex Factory.
However, the main event will be Jerome Powell’s speech on Friday, August 23, whose comments are expected to provide guidance on the Fed’s future interest rate decisions.
Moreover, recent data from August 1, including lower-than-expected inflation figures for July, suggest that price pressures may be easing. This has sparked speculation that the Fed may consider cutting interest rates as early as September.
According to market data from the CME FedWatch tool, there is a 75% chance that the Fed will cut rates by 25 basis points next month.
The minutes of the FOMC meeting, scheduled for release on August 21, will be closely watched for any signs of the Fed’s future plans. The minutes will provide insight into how the Fed views the economy and whether it might cut rates if inflation continues to slow.
Investors are also awaiting the release of U.S. personal consumption expenditure (PCE) inflation data later this month, which could provide further guidance on inflation trends.
While the cryptocurrency market has had its ups and downs over the past week, it has since stabilized. Many analysts believe that Bitcoin’s price could rise, as it is often seen as a hedge against inflation.
This week’s events are likely to influence not only the cryptocurrency market, but also broader financial markets as investors react to any changes in the Fed’s policy outlook.
Also read: “The current inflation started with Trump’s administrative spending” — Peter Schiff
