As the eighth month of the year draws to a close, cryptocurrency investors find themselves without the anticipated substantial surge. Despite Bitcoin reaching a new all-time high prior to the halving event, the increase was underwhelming compared to previous peaks. Investors are questioning whether these unexciting days are finally behind them and pondering what the near future holds for cryptocurrencies.
Key Events Impacting Cryptocurrency Prices
The week ahead is pivotal for Bitcoin and altcoins, with several significant events lined up. Anticipating these events allows investors to take more informed positions. Two key factors—Personal Consumption Expenditures (PCE) data and NVIDIA’s earnings report—are expected to significantly influence market volatility.
On Wednesday, August 28, the market will react to the Fed/Waller speech at 08:15, followed by NVIDIA’s earnings report at 23:20. Starknet V0.13.2 Mainnet is also set to be launched. Thursday, August 29, features the Fed/Bostic at 01:00, alongside United States GDP and unemployment claims data at 15:30. Finally, on Friday, August 30, US PCE data will be released at 15:30.
What Do Experts Predict?
The PCE data, crucial for the Fed’s inflation monitoring, holds substantial importance. A higher-than-expected figure could complicate the Fed’s position, already strained by weakening employment figures. Conversely, data aligning with expectations would bolster the likelihood of a minimum 100 basis point rate cut targeted for 2024.
The Fed acknowledges the risks of over-tightening, with employment figures already showing strains. This acknowledgment indicates a forthcoming period of monetary easing, although unexpected inflation surges could halt rate cuts.
Actionable Insights for Investors
Given the upcoming events, here are some concrete steps investors can consider:
- Monitor the Fed/Waller speech for insights into future monetary policy.
- Analyze NVIDIA’s earnings report for potential impacts on cryptocurrency mining stocks.
- Keep an eye on US GDP and unemployment claims to gauge overall economic health.
- Follow the PCE data closely as it will influence Fed’s rate cut decisions.
In the absence of major cryptocurrency-specific announcements, the monthly closing of BTC prices remains crucial. BTC is attempting to stay above $63,500, and a monthly close above $68,000 could boost risk appetite among altcoin investors. The only significant risk factor is the excess supply from US assets, with an upcoming approval hearing for FTX returns.