3 things to watch next week for crypto markets

Stock markets have shown signs of recovery, but the same cannot be said for crypto markets, which are facing strong resistance.

Volatility could rise again as all eyes will be on the Federal Open Market Committee (FOMC) meeting and proceedings this week, in addition to economic data reports.

Economic events from August 19 to 23

The first economic event of the week is the FOMC meeting on Wednesday, during which the minutes of the July meeting and policy decisions will be discussed.

This provides an in-depth account of the Fed’s policy outlook and includes details on committee members’ positions on monetary policy. There will also be an insight into their views on the economic situation and future trends.

S&P Global Manufacturing and Services PMI reports for August will be released on Thursday. These reports provide business conditions for the US manufacturing and services sectors, which are representative of overall economic conditions.

Policymakers use these reports as forward-looking indicators that reflect trends in the global economy.

Key events this week:

1. Fed meeting minutes – Wednesday

2. S&P Global Services PMI data – Thursday

3. July Existing home sales data – Thursday

4. New home sales data for July – Friday

5. Fed Chairman Powell speaks on Friday

6. A total of 4 Fed speaker events this week

The S&P 500…

— Kobeissi Letter (@KobeissiLetter) August 18, 2024

There will be another Fed speech on Friday. President Jerome Powell will take the stage at the Jackson Hole Economic Policy Symposium, an annual global forum for central bankers, policy experts and academics in Wyoming.

His speech is expected to set the stage for an expected rate cut in September and how much rates will drop in the coming months.

Recent economic data reports have shown that inflation continues to slide toward the Fed’s 2% target, consumer spending is holding up and unemployment is not worsening.

“The recent data flow is consistent with our soft landing forecast,” Bank of America Securities Chief Economist Michael Gapen wrote in a note to clients on Friday.

Crypto market outlook

While tech stocks have kicked off the bottom, crypto assets have been sluggish.

The total market capitalization is down 1.3% on the day to $2.17 trillion, although it remains limited since recovering more than $2 trillion after the big market dump earlier this year month

Bitcoin failed to hold above $60,000 and retreated to $58,700 during the Asian trading session on Monday morning.

Ethereum has fared slightly better, marginally gaining on the day to trade at $2,642 at the time of writing.

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