Amid uncertainty in the US economy and expectations of interest rate cuts, the crypto markets are showing instability. This article examines the major economic events expected this week and their potential impact on the cryptocurrency market.
Market Overview and Economic Conditions
Last week, cryptocurrency markets reached a capitalization of over $4 trillion, but momentum slowed over the weekend. US stock markets reached record highs; however, the labor market is showing weak signals with a sharp rise in weekly unemployment claims. The Federal Reserve is expected to cut interest rates this week due to labor market weakness.
Key Events This Week
Key events of the week include the August retail sales report due on Tuesday, and the FOMC meeting on Wednesday where a rate cut is anticipated. According to CME, the probability of a 25 basis point cut stands at 96.4%. Additionally, the Philadelphia Fed Manufacturing Index and initial jobless claims data will be released on Thursday. These economic factors may influence the markets.
Crypto Market Outlook
The cryptocurrency markets have already begun to react to the expected rate cut, with total capitalization shrinking by 1% to $4.13 trillion. Bitcoin fluctuated around the $116,000 mark but later slid back to $115,000. Ethereum also showed slight downturns, trading at $4,630. Most altcoins exhibited losses, with XRP, Solana, and Cardano experiencing the most significant declines.
The uncertainty in markets related to economic events continues to impact cryptocurrency assets. Investors are closely monitoring news, and further changes may lead to increased volatility.
