Cryptocurrencies and related actions extended losses on Tuesday while merchants were preparing to release FED FOMC minutes on Wednesday and Jackson Hole’s speech of the president of Fed Jerome Powell on Friday.
Bitcoin dropped 3.2% in the last 24 hours to slide below $ 114,000, while Ether dropped from 5.3% to $ 4,200. XRP fell 6.2%, Ada de Cardano slipped 8%and the wider cryptography market fell by 3.2%.
The actions of companies linked to the crypto, such as bitcoin minors, crypto exchanges and cash companies of digital assets, have suffered even larger losses, with Mara, Coin and MSTR closing respectively the regular session today down 5.7%, 5.8%and 7.4%.
On the other hand, in general, American actions suffered less: the DOW ended flat, the S&P 500 fell by 0.59% and the NASDAQ slipped by around 1.5%. The disparity underlines how digital assets, which are strongly based on inexpensive liquidity, are more exposed to changes in the expectations of rates than traditional actions.
Investors are now faced with a week responsible for macro-catalysis.
On August 20 at 2 p.m., the Fed will publish the minutes of the FOMC meeting held from July 29 to 30, offering an overview of the pricing and inflation of decision-makers. From August 21 to 23, central bankers meet for the Jackson Hole symposium, with Powell’s opening speech for August 22 at 10 a.m. Together, Powell’s report and speech could define market expectations for the September political meeting.
Here are some best Macro facts, merchants will probably look at this week to assess how the Fed will react at the meeting next month.
Delayed prices bite
Many companies have absorbed prices to protect market share, but analysts warn that they cannot do so indefinitely. Once transmitted to consumers, these costs could generate higher prices and force the Fed to wait before reducing.
Sticky inflation data
Despite some cooling, the inflation gauges remain high. The production price index, a large key measurement, was warmer than forecasts, suggesting persistent pressures that complicate any case for aggressive relaxation.
Company limits
US leaders have reported that they would ultimately be forced to move down the downstream rate costs. If this happens, consumer inflation could accelerate in the coming months, which makes a September cup premature.
Mixed economic signals
The American economy shows both the slowdown in employment growth and the resilient demand for consumers. This uneven image could encourage Powell to plead in favor of patience until the Fed has clearer evidence that growth can resist tariff costs.
Political uncertainty
The prices intersect with tax and commercial policies unpredictably. This complexity increases the risk of missteps, which more likely makes a bellicist tone to Jackson Hole.
History lessons
The 2018-2019 pricing shocks produced delayed but significant inflation, which caused caution. Powell can rely on this previous one to justify respect for this time.
Indicators turned
The upcoming publication of new economic data, including the publication of preliminary August data on manufacturing and services, could show the construction of costs on costs related to the tariff. Powell could emphasize them as another reason for prudence.
Internal divisions
A few minutes from the July FOMC meeting, he can reveal a split inside the Fed. Hawks have focused on inflation and doves emphasizing jobs, Powell can highlight the need for consensus, which often promotes expectations.
For the crypto, the issues are clear. Buer rates for more and more slow down the liquidity that feeds speculative gatherings, increasing funding costs for minors and weighing the exchange activity. If Powell reports prudence, sale in tokens and actions related to cryptography could deepen. A dominant surprise could however offer the spark for a rebound.
