The cryptocurrency market is giving signals that the coming week is of critical importance. This period, when the US Federal Reserve (Fed) is expected to make statements on interest rate policies, will be decisive not only for crypto but also for the entire financial sector. In particular, the Fed’s interest rate decision, Fed Chair Jerome Powell’s statements and US employment data are being closely followed.
Fed’s interest rate decision and Powell’s speech
The crypto market is closely following the Fed’s interest rate decision. Although the market generally expects interest rates to remain stable at this meeting, expectations for three interest rate cuts for 2024 are increasing. According to the CME FedWatch Tool, the probability of a 25 basis point interest rate cut in September is shown as 89%. In addition, the chance for additional cuts in November and December has increased. This situation is evaluated as the effect of the recent decline in inflation.
On the other hand, Fed Chair Jerome Powell’s speech is also of great importance. While dovish statements can cause an increase in the market, a hawkish attitude can have a negative effect. Both crypto investors and the general financial sector will be following Powell’s statements carefully.
US employment data will attract attention for cryptocurrency projects
The July US employment data, which will be announced on August 2, will also be an important indicator for the markets. This data will reveal the state of the labor market and may affect the Fed’s interest rate decisions. The increase in employment and the decrease in the unemployment rate are generally perceived positively for the crypto market and the general financial sector. According to market estimates, an employment increase of 190 thousand people is expected in July. This figure is below the 206 thousand in June. The unemployment rate is expected to remain at the same level as the previous month. This data is of critical importance in terms of the course of the labor market and the impact on the Fed’s policies.
The cryptocurrency market is in great anticipation before these critical events. Potential interest rate cuts, Powell’s statements and employment data may cause significant movements in the market. Investors are eagerly waiting to see how the developments will be and how they will affect the financial markets. On the other hand, the market’s reaction to these events will provide important information about its resilience and adaptability. This week may emphasize the importance of the connection between traditional financial policies and the rising crypto asset market.
What happened last week?
Last week was positive for the crypto market. The SEC’s approval of the spot Ethereum ETF in the US and the Bitcoin Conference 2024 held in Nashville attracted attention. The positive views of the speakers at the conference about Bitcoin and the signals that the US’s interest in the crypto sector is increasing were important. In short, next week will be a critical period for the crypto market. The Fed’s decisions, Powell’s statements and employment data will determine the direction of the markets. This is a process that investors should follow carefully.
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