Markets
FOMC and Jerome Powell speech at the heart of discussions on Fed rate cuts
The cryptocurrency market is buzzing ahead of a crucial week. Key events are expected to shed light on the US Federal Reserve’s monetary policy plans, making this week a pivotal time not just for cryptocurrencies, but for the entire financial sector. Notably, the FOMC interest rate decision, Fed Chair Jerome Powell’s press conference, and US employment data are in focus.
FOMC Interest Rate Decision and Powell Speech
The cryptocurrency market will be closely monitoring the upcoming FOMC event, waiting for clues on the Fed’s potential rate cut plans. Although the market predicts that the central bank will keep its key rates unchanged at the next meeting, expectations for three rate cuts in 2024 have surged.
At the same time, according to the CME’s FedWatch tool, there is an 89% chance that the Fed will announce a 25 bps rate cut in September. Moreover, bets have increased for additional cuts in November and December, given the recent slowdown. inflation data.
Furthermore, Federal Reserve Fed Chairman Jerome Powell’s speech will also be key. Dovish comments could trigger a rally, while aggressive remarks could dampen market sentiment. Crypto market enthusiasts and the broader financial sector will be paying close attention, as Powell’s thoughts could significantly influence market dynamics.
Read also : Ben Armstrong Apologizes to Solana Community, Here’s Why
US Employment Data
Another key event is the release of US unemployment data for July, scheduled for August 2. This indicator will provide investors with crucial information on the health of the labor market.
Meanwhile, the U.S. Federal Reserve is closely monitoring this data as it impacts its policy rate decisions. Higher unemployment rates, coupled with weaker nonfarm payrolls data, typically boost the cryptocurrency market as well as broader financial sector sentiment.
Market estimates predict that the US unemployment rate will rise to 190,000 in July, down from 206,000 in June. At the same time, the unemployment rate is expected to remain stable at 4.1% compared to the previous month. These data will be crucial to understanding the trajectory of the labor market and its influence on the Fed’s monetary policy decisions.
What’s next for the cryptocurrency market?
As the cryptocurrency As markets prepare for these key events, anticipation and speculation are running high. Potential rate cuts, combined with Powell’s remarks and employment data, could set the stage for significant market moves. Investors are eagerly awaiting how these developments will play out and impact the broader financial landscape.
In the meantime, the market’s reaction to these events will provide valuable insights into its resilience and adaptability. In other words, this week could mark a turning point, highlighting the interdependence of traditional financial policies and the emerging digital asset market.
Last week was a boon for the cryptocurrency market, with the SEC giving approval to the US Spot Ethereum ETF and Bitcoin Conference 2024 in Nashville. Several speakers offered optimistic outlooks on Bitcoin and the United States’ direction toward the cryptocurrency sector.
Read also : Cantor Fitzgerald to Launch $2 Billion Bitcoin Fund