As a seasoned analyst with over two decades of experience in financial markets, I have witnessed numerous market cycles and learned that every trend eventually reverses, often when least expected. Given this week’s macro events, it seems we are standing at one such juncture.
As an analyst, I find myself anticipating a more dynamic week within the cryptocurrency market, given the significant macroeconomic events unfolding. Specifically, the U.S. Federal Reserve is scheduled to hold its monetary policy meeting on Thursday, August 22nd. Consequently, there’s heightened interest in Fed Chair Jerome Powell’s address during this meeting, as his insights into the anticipated interest rate cuts slated for next month in September could significantly impact the market.
On Tuesday, 20th August, the Australian Reserve Bank will convene its monetary policy discussion. Meanwhile, the FOMC gathering is scheduled for the following day, Wednesday, 21st August. The US central bank may garner favorable responses due to optimistic analyst expectations, following the reduction in inflation rates reported for July 2024. In the latter part of the week, on Friday, 23rd August, Chair Powell will address the Jackson Hole meeting.
Additionally, the world eagerly awaits the Bank of Japan’s decision on whether to increase interest rates. Last month, the unraveling of the Yen Carry trade caused significant turmoil not only in global financial markets but also in the broader cryptocurrency market. This suggests that the crypto market has been sensitive to recent global economic changes.
Bitcoin Investing Essentials, A Sneak Peek at This Week’s Biggest Events (8/19-8/25)
As a seasoned investor with over two decades of experience under my belt, this week stands out as one of the most significant in recent memory. The annual Jackson Hole global central bank meeting is set to commence this Thursday, marking a pivotal moment for financial markets worldwide. Given my past encounters with market volatility and economic uncertainty, I can’t help but feel a sense of anticipation as the news related to the potential yen rate hike and dollar rate cut unfolds. The decisions made during this meeting could have profound implications for my portfolio and the broader financial landscape, making it essential that I stay informed and vigilant throughout the week.
— Greeks.live (@GreeksLive) August 19, 2024
Bitcoin Headwinds Continue amid Global Macro Conditions
Despite rising concerns about the U.S. economy, Bitcoin has been encountering obstacles and repeatedly being turned down at the $60,000 mark since August. In contrast, the global MSCI index has risen by 1%, while Gold has surged to a record high of $2,500, outperforming Bitcoin’s 9% drop in value during this same period.
As a researcher, I’ve observed an interesting development: The recent transfer of $600 million in Bitcoin by the U.S. government has contributed to increased selling pressure. Currently, the U.S. government maintains over $12 billion in Bitcoin holdings. Over the past month, they have moved approximately 40,000 Bitcoins, which has caused a stir in the market.
Alternatively, the Bitcoin funding rate is now below zero, a level last observed in 2022, suggesting a potential drop in its price below $50,000. This decline indicates a significant decrease in speculative interest for Bitcoin.
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2024-08-19 13:48