Crypto markets are paying attention this week to several US macroeconomic events that could impact the price of Bitcoin. In 2024, macroeconomic events have once again shown their impact on crypto assets.
Bitcoin (BTC) remains below $60,000. This price decline is due to the shift in market sentiment from fear to extreme fear.
US Macroeconomic Events This Week
With this in mind, investors are paying close attention to upcoming data releases and policy announcements that could influence market sentiment and cause volatility. With several events on the US economic calendar this week, three stand out as the biggest drivers of potential price volatility for Bitcoin and other cryptocurrencies.
Federal Reserve FOMC Meeting in July
The Federal Reserve will release its July Federal Open Market Committee (FOMC) meeting on Wednesday, August 21. This statement provides information on the central bank’s thinking on interest rates and monetary policy.
Any sign of easing or adjustment could impact financial markets, including cryptocurrencies. A soft tone, i.e. the possibility of a rate cut, could provide a boost to riskier assets like Bitcoin, while a more hawkish tone could trigger a selloff.
Unemployment Data
Crypto markets are also awaiting the first weekly report on jobless claims on Thursday. The U.S. Bureau of Labor Statistics (BLS) will use this data to paint a picture of the state of the labor market and potentially influence investor sentiment.
A lower-than-expected number of jobless claims could indicate a strong economy and potentially prompt investors to move into riskier assets like cryptocurrencies. Conversely, rising claims could raise concerns about a weakening economy, which could lead to a shift toward safe havens and lower prices for Bitcoin and cryptocurrencies.
Jerome Powell’s Speech at Jackson Hole Meeting
Traders and investors are also looking forward to Federal Reserve Chairman Jerome Powell’s speech at the annual policy meeting in Jackson Hole on Friday. Markets will largely focus on what Powell says at the meeting.
Last year’s speech at the Jackson Hole Economic Symposium was titled “Inflation, Growth, and the Way Forward.” He added that policymakers were prepared to keep interest rates at capped levels until they were confident that inflation would fall sustainably to 2%.
As in 2023, this Friday event will also be of interest to traders and investors. Powell could confirm or challenge market prices as authorities continue to decide the next move in interest rates based on the data.
Bitcoin Price Predictions Ahead of US Macroeconomic Events
Bitcoin is currently stabilizing. This means that the next direction will only be determined once the price breaks this technical pattern. Based on the RSI (Relative Strength Index), which measures momentum, Bitcoin may remain range-bound for a short period. This is because the RSI remains below 50, indicating buyer indecision.
A break and close below the downtrend line on the daily time frame could push Bitcoin into the demand zone. This offers late buyers and active traders another buying opportunity between $53,485 and $57,050.
However, if such a move occurs and Bitcoin closes below the $53,313 midline, the downside potential could increase Bitcoin’s ability to accumulate selling liquidity.
Conversely, a break and close above the uptrend line could lead to more buy orders. Based on the orange spikes on the volume profile, several buyers are waiting to interact with Bitcoin prices above $63,000. Buying pressure above this level could strengthen the upside potential.
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