Recent economic data from the US raises concerns for the cryptocurrency market. Consumer confidence and inflation expectation indicators do not meet analysts' expectations.
Impact of Consumer Confidence on Cryptocurrencies
New data shows that consumer confidence fell to 58 in August, while an expectation of 62 was anticipated. This 5% decline marked the first drop in four months, negatively impacting forecasts for cryptocurrencies.
Increase in Inflation Expectations
According to preliminary data, long-term inflation expectations increased to 3.9% from the previous 3.4%. This also adversely affects cryptocurrencies, as rising price expectations may lead investors to be cautious.
Federal Reserve Outlook
The Federal Reserve may consider lowering interest rates, but current data raises questions about its ability to manage the growing inflation expectations and overall economic instability.
Under the present economic conditions, discussing favorable prospects for cryptocurrencies is challenging. Expectations of interest rate cuts may be offset by rising concerns about inflation and consumer purchasing power.
