As an analyst with over two decades of experience in the financial markets, I’ve seen enough market swings to know that every rally has its potential pitfalls. Last week’s surge in Bitcoin and Ethereum, fueled by the dovish remarks from Fed Chair Powell, has certainly caught my attention.
Last week, the value of various digital currencies rose significantly due to growing anticipation about a possible reduction in interest rates by the U.S. Federal Reserve in September.
On August 22nd (Friday), Bitcoin almost hit a record high of around $65,000, while Ethereum surged to approximately $2,800. These price increases were prompted by comments from Federal Reserve Chair Jerome Powell indicating potential rate cuts by the U.S. government.
Currently, there’s a shift in focus towards the forthcoming US Personal Consumption Expenditures (PCE) data and crucial economic markers. The insights derived from these indicators might guide future decisions.
Crucial Fed Remarks Expected This Week
As a researcher keeping tabs on the economic landscape, I’m eagerly anticipating two significant events in my calendar:
On the other hand, even a slight indication of aggressive policies might prompt immediate selling, potentially causing disruptions across the entire financial market, including the cryptocurrency industry.
US PCE Data and GDP Data
Alongside the anticipated Federal Reserve updates, traders are also eagerly waiting for this week’s release of the U.S. Personal Consumption Expenditures (PCE) inflation figures due on Friday. These numbers will provide a more distinct understanding of current inflation patterns.
In July, there’s an anticipated small bump in inflation rates, going from 0.1% in June up to 0.2%. Yearly inflation is forecasted to stay the same at 2.5%. Also, the month-to-month core PCE (excluding food and energy costs) is expected to hold steady at 0.2%, but there might be a slight rise to 2.7% when compared year over year.
If the data shows a greater-than-anticipated increase in inflation rates, it might dampen investor enthusiasm and possibly lead to a correction within the current cryptocurrency market surge. The upcoming week is significant as it could influence market mood since traders are eagerly waiting for these critical updates.
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2024-08-25 13:24