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The crypto market is on edge this week as several key US macroeconomic events loom. With Bitcoin (BTC) still hovering below $60,000, traders are watching closely. In 2024, macroeconomic factors have once again become significant drivers in the crypto space, marking a shift from their minimal influence last year.
Here are three crucial events this week that could shape Bitcoin’s price and the broader crypto market.
Fed’s July FOMC Meeting Minutes
On Wednesday, August 21, the Federal Reserve will release the minutes from its July meeting. These minutes will give investors insight into the central bank’s stance on interest rates and future monetary policy.
A dovish stance, hinting at potential rate cuts, could trigger optimism and drive up Bitcoin’s price. However, a more hawkish tone could spark a sell-off across riskier assets, including cryptocurrencies.
With inflation trends playing a growing role in Bitcoin’s price movements, traders are eyeing the Fed’s every move. After last week’s inflation data, markets are pricing in a possible rate cut in September.
Initial Jobless Claims
On Thursday, August 22, the weekly report on initial jobless claims will offer a snapshot of the US labor market. This data is crucial for gauging the health of the economy and, by extension, risk appetite among investors.
If jobless claims are lower than expected, it could signal a strong economy and drive demand for cryptocurrencies. On the other hand, a rise in claims could spook investors, leading to a potential decline in Bitcoin’s price as they seek safer assets.
Weak economic data earlier this month shook the markets, but with concerns about a recession fading, any surprises in Thursday’s data could reignite interest in crypto assets.
Jerome Powell’s Jackson Hole Speech
The crypto community will be closely following Fed Chair Jerome Powell’s speech on Friday, August 23, at the annual Jackson Hole Economic Symposium. Last year’s event was pivotal, with Powell discussing inflation and the Fed’s commitment to controlling it.
This year, Powell’s remarks could offer clues about the Fed’s next moves on interest rates, which would directly impact the crypto market. Traders are looking for signs that could either reassure or unsettle the market.
Bitcoin’s Technical Outlook
Bitcoin is currently stuck in a consolidation phase, with its next move likely hinging on a breakout from a technical formation. The Relative Strength Index (RSI) remains below 50, suggesting that bulls lack conviction for now.
A break below the current range could lead to a buying opportunity for traders between $53,485 and $57,050. However, a close above the $63,000 mark would signal stronger bullish momentum, with a potential continuation of the uptrend if Bitcoin crosses $67,000.
The outcome of this week’s macro events could be the trigger that decides Bitcoin’s next major move. Traders and investors will be watching closely.
English (US) · 