3 Things That Could Impact Crypto Markets in Week Ahead 



Crypto markets remained mostly flat over the weekend following a dip late last week as Bitcoin and Ethereum pulled back. However, they started to trade lower on Monday morning.

This week could see more volatility ahead as all eyes will be on the outcome of US President Trump and Volodymyr Zelensky’s meeting on Monday.

Trump issued a statement just hours before he was set to meet with his Ukrainian counterpart, saying that Zelensky “can end the war with Russia almost immediately if he wants to.”

A cessation of conflict between the two nations would boost investor confidence across all asset markets.

Economic Events August 18 to 22

Thursday will see two purchasing managers’ index (PMI) reports released. The August S&P Global Manufacturing PMI and Services PMI indices are leading economic indicators used to gain timely insights into changing conditions.

There is also some existing home sales data released on Thursday, but real estate reports have very little impact on risk-on asset markets.

Last week’s mixed inflation and consumer data refueled uncertainty into the Fed policy outlook; therefore, Chair Jerome Powell’s Jackson Hole speech on Friday is expected to instantly influence markets.

A dovish tone could boost markets and riskier investments such as crypto. In contrast, a hawkish stance that highlights inflation risks could trigger sharp corrections and volatility.

“Odds are that he will be more of an owl, waiting and watching, than either a hawk or a dove. In other words, he’ll say that a Fed rate cut is possible at the September meeting, but the Fed’s decisions are data-dependent,” stated Yardeni Research.

Investors expect the central bank to resume rate cuts in September, after holding off for months, and current futures markets predict an 84.6% probability of a cut to 4.0 to 4.25%.

Crypto Market Outlook

Digital asset markers have taken a dive this Monday morning in Asia, with total capitalization dropping back to the $4 trillion level, down almost 6% from last week’s all-time high.

Bitcoin was leading losses with a fall to $115,000 on Monday morning as it shed 2.5%. The asset is now 6.9% down from its peak price last week as the correction deepens.

Ethereum was also heading south, dropping to its lowest point for a week at $4,345, still 10% away from its 2021 all-time high.

Altcoins were mixed with losses for XRP, Solana, Hyperliquid, and Sui while Chainlink and Monero bucked the trend.

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