Bitcoin has been struggling a bit recently, but this week might bring some positive news. Back on August 5, the market took a tumble fueled by events in Japan and sudden recession fears sparked by weak U.S. labor market data. While those concerns seem to have eased, Bitcoin hasn’t yet quite experienced the bounce back that many were hoping for.
So, what’s happening this week that could change that?
There are three major events in the U.S. that we should be paying attention to. First, on Wednesday, we’ll get to see the FOMC Minutes. These are the detailed notes from the latest interest rate meeting of the U.S. Federal Reserve.
In the past, these minutes haven’t usually caused much market turbulence, but this time could be different. The market is eagerly awaiting news on potential interest rate cuts, which could start as soon as September.
The big questions are: How many cuts might there be? And how quickly could they happen? The July meeting minutes might give us some hints. Then, on Thursday, we’ll get updates on the health of the U.S. industrial and service sectors, which could also influence market sentiment.
But the real event to watch for comes on Friday.
Friday Can Be Key
This weekend might be an active one for Bitcoin, thanks to the Jackson Hole symposium. This annual event, hosted by the Federal Reserve, gathers central bankers from around the globe to discuss monetary policy.
On Friday, all eyes will be on Fed Chair Jerome Powell as he shares his thoughts on the U.S. economy and the Fed’s interest rate plans.
There’s a lot of hope that Powell will hint at rate cuts or suggest that current policies might be stricter than necessary. However, Powell is known for being cautious, so don’t expect any major announcements.
It’s also likely that Powell will hold back on revealing too much because a crucial jobs report is coming up on September 6. The Fed will likely rely on that report when making decisions about interest rates at their next meeting on September 18.
The jobs report could determine whether we see a rate cut of 0.25% or 0.50% on September 18, which could then ignite a new upwards run for Bitcoin.
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