From the perspective of the cryptocurrency market, the week ahead is set to be marked by several important economic events due to take place in the United States. Crypto traders and investors alike will be closely watching these developments, as they will undoubtedly have significant implications for the trajectory of the digital asset market throughout the remainder of 2021.
Here are some of the key economic events on the calendar for the coming week:
1. FOMC Meeting Minutes
The Federal Open Market Committee (FOMC) held its latest policy meeting earlier in August, where it signaled that it could start tapering asset purchases by the end of the year. The minutes of that meeting will be published on Wednesday, August 18.
With the potential for a more hawkish stance from the Federal Reserve, crypto investors will be watching this closely. Any indication that the Fed is considering tightening monetary policy could lead to a sell-off in Bitcoin and the wider market.
2. Retail Sales
Retail sales figures for July will be released on Tuesday, August 17. Retail sales are a key indicator of consumer spending, which is significant for the overall strength of the US economy. With the COVID-19 Delta variant spreading rapidly in the country, there is some concern that consumer spending may slow down in the coming months.
Crypto investors will be watching these figures closely, as a decline in retail sales could lead to a decline in the overall market sentiment. Additionally, a slowdown in spending could lead to reduced demand for Bitcoin and other digital assets in the short term.
3. Initial Jobless Claims
The weekly unemployment claims figure will be released on Thursday, August 19. With the US Federal Reserve indicating that it may soon start tapering its asset purchases, market participants will be watching closely to see how this impacts the job market.
If jobless claims remain elevated, it could signal that the recovery is losing momentum and lead to a decline in market sentiment. On the other hand, a decline in jobless claims could indicate that the economy is on a stronger footing and boost demand for Bitcoin and other cryptocurrencies.
4. Housing Market Data
There will be a number of key housing market data releases throughout this week, including housing starts and building permits on Tuesday, August 17, and existing home sales on Friday, August 20. The housing market has been a key driver of economic growth in the US over the past year, and any surprises in this sector could lead to volatility in the cryptocurrency market.
For example, if the number of new housing starts falls below expectations, this could be seen as a sign that the broader economic recovery is slowing down. If this leads to a decline in market sentiment, it could trigger a sell-off in Bitcoin and other cryptocurrencies.
5. Jackson Hole Symposium
The Federal Reserve Bank of Kansas City will host its annual economic policy symposium in Jackson Hole, Wyoming, from August 26-28. The symposium is attended by key policymakers from around the world and is seen as a key driver of market sentiment.
Crypto investors will be watching closely to see if any major announcements are made during the event. If the Fed continues to signal that it may soon start tapering asset purchases, this could lead to volatility in cryptocurrency prices.
Overall, the economic events scheduled for this week have the potential to be a major driver of market sentiment in the cryptocurrency market. Traders and investors will be keeping a close eye on these developments and adjusting their positions accordingly.
While short-term price movements may be unpredictable, these economic events will be important indicators of the overall strength of the US economy, which will in turn have a major impact on the future trajectory of the crypto market. As always, investors should exercise caution and consider their risk tolerance before making any investment decisions.
The United States economy this week is a crucial factor for the crypto market’s trajectory. President Joe Biden recently stated that he wouldn’t support debt deals that protect the interests of wealthy tax evaders and cryptocurrency investors while risking food assistance for the average American, further complicating matters.
Janet Yellen, the Treasury Secretary, cautioned that failing to reach an agreement would jeopardize both the US and the global economy, emphasizing the importance of resolving the ongoing debt crisis. As a result, understanding the economic events of the week leading up to the debt ceiling deadline is crucial to understanding the possible trajectory of the cryptocurrency market.
On May 24, the market will be closely watching the May 2023 FOMC meeting minutes, which will provide insight into the Federal Reserve’s rate hike trajectory in future meetings. On May 25, the US Unemployment Benefits data will be published. The expectation is that the unemployment benefits will be at 250K, with a previous count of 242K. The market remains expectant of the May 25 US GDP release, with expectation hitting 1.1%, a drop from the previous 2.6%.
Core PCE, as measured by the US Bureau of Economic Analysis, tracks inflation by examining the costs of goods and services purchased by consumers. The PCE index is set to face publication on May 26, and a decline in this number might lead to price surges in both Bitcoin and the overall crypto market.
In addition, several Federal officials are scheduled to speak in the coming days. The market believes that they will support rate pauses, which could impact crypto prices. Furthermore, Neel Kashkari, Minneapolis Federal President, pledged his support for rate hike pauses at the upcoming FOMC summit in June 2023.
Finally, a lot is at stake in the economic world, and these events are expected to influence the sentiments within the cryptocurrency market. Market participants predict that the rejection of debt deals by the US President won’t bode well for the country’s economy. In response, the Federal government is expected to take measures to prevent the economy from falling apart.
Investors in the cryptocurrency market are keeping a close watch on these developments because they could significantly shape the market’s trajectory over the next few weeks. With uncertainty looming in the economic world, we must maintain a close eye on the developments that might have an impact on the crypto world.