The crypto market is keenly awaiting the upcoming Federal Reserve meeting and US economic data that could significantly influence the prices of digital assets.
How Will Powell’s Stance Impact the Crypto Market?
Financial analysts expect the Fed to maintain interest rates at 4.25-4.50%. However, any change in Federal Reserve Chair Jerome Powell's tone, especially hints about potential rate cuts, could instantly affect Bitcoin and Ethereum prices. In the past, cryptocurrency prices have shown high sensitivity to interest rate expectations.
Could Softer US Economic Reports Fuel a Crypto Rally?
Following the Fed meeting, traders will focus on two crucial economic reports: the Core PCE inflation and July employment figures. If the reports indicate lower numbers, it could impact Fed's rate cut expectations which might lift riskier assets like Bitcoin. Conversely, the opposite scenario is also possible.
Big Tech Earnings Might Set Tone for Crypto Market
This month also features earnings reports from over 150 S&P 500 companies, including giants like Meta, Apple, and Microsoft. Strong results could boost risk appetite, which might, in turn, encourage Bitcoin purchases. However, pessimistic forecasts could negatively impact short-term sentiment for digital assets.
In the coming days, investor attention will be focused on the Fed's statements and economic data that could significantly influence sentiment in the crypto market and prices of digital assets.
