The crypto market is abuzz with anticipation as it enters a crucial week. Key events are set to shed light on the US Federal Reserve’s policy plans, making this week pivotal not only for crypto but for the entire financial sector. Notably, the FOMC interest-rate decision, Fed Chair Jerome Powell’s press conference, and US job data are in sharp focus.
FOMC Interest-Rate Decision & Powell’s Speech
The crypto market will be closely monitoring the upcoming FOMC event, expecting cues on the Fed’s potential rate cut plans. Although the market predicts the central bank will maintain its policy rates in the upcoming meeting, expectations for three rate cuts in 2024 have surged.
Meanwhile, according to the CME FedWatch Tool, there is an 89% chance the Fed will announce a 25 bps rate cut in September. Besides, bets have increased for additional cuts in November and December, driven by recent cooling inflation data.
In addition, Federal Reserve Chair Jerome Powell’s speech will also be pivotal. Dovish comments could spark a rally, while hawkish remarks might dampen market sentiment. Crypto market enthusiasts and the broader financial sector will be paying close attention, as Powell’s insights could influence market dynamics significantly.
Also Read: Ben Armstrong Apologizes to Solana Community, Here’s Why
US Job Data
Another key event is the release of US unemployment data for July, scheduled for August 2. This metric will provide investors with crucial insights into the labor market’s health.
Meanwhile, the US Federal Reserve closely watches this data, as it impacts its policy rate decisions. Higher unemployment rates, coupled with lower non-farm payroll data, typically boost the crypto market as well as the broader financial sector’s sentiment.
Notably, market estimates predict the US unemployment rate will be 190,000 in July, down from 206,000 in June. Meanwhile, the unemployment rate is expected to remain steady at 4.1% from the previous month. This data will be crucial in understanding the labor market’s trajectory and its influence on the Fed’s policy decisions.
What’s Next For Crypto Market?
As the cryptocurrency market braces for these key events, anticipation and speculation are soaring. The potential rate cuts, combined with Powell’s remarks and the job data, could set the stage for significant market movements. Investors are eagerly waiting to see how these developments will unfold and impact the broader financial landscape.
Meanwhile, the market’s response to these events will provide valuable insights into its resilience and adaptability. In other words, this week could mark a turning point, highlighting the interconnectedness of traditional financial policies and the emerging digital asset market.
The last week was a boon for the crypto market, with the SEC giving its approval for the US Spot Ethereum ETF and Bitcoin Conference 2024 at Nashville. Several speakers have provided a bullish outlook on Bitcoin and the US’s shifting focus towards the crypto sector.
Also Read: Cantor Fitzgerald To Launch a $2 Billion Bitcoin Financing Fund
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