3 things to watch for crypto markets in the coming week

While stock markets are showing signs of recovery, the same cannot be said for crypto markets, which are facing strong resistance.

Volatility could increase again as all eyes will be on the Federal Open Market Committee (FOMC) meeting and minutes this week, in addition to economic data reports.

Economic events 19 to 23 August

The first economic event of the week is the FOMC meeting on Wednesday, where the minutes of the July meeting and policy decisions will be discussed.

This report provides a detailed overview of the Fed’s policy outlook and details committee members’ positions on monetary policy, as well as insight into their views on the economic situation and future trends.

The S&P Global Manufacturing and Services PMI reports for August will be released on Thursday. These reports provide insight into business conditions in the U.S. manufacturing and services sectors, which are representative of overall economic conditions.

These reports serve as forward-looking indicators for policymakers, reflecting the development of the overall economy.

Important events this week:

1. Minutes of the Fed meeting – Wednesday

2. S&P Global Services PMI data – Thursday

3. July Existing Home Sales Data – Thursday

4. July New Home Sales Data – Friday

5. Speech by Fed Chairman Powell – Friday

6. A total of 4 Fed speaker events this week

The S&P 500…

— The Kobeissi Letter (@KobeissiLetter) 18 August 2024

There will be another Fed speech on Friday. Chairman Jerome Powell will take the stage at the Jackson Hole Economic Policy Symposium, an annual global forum for central bankers, policy experts and academics in Wyoming.

His speech is intended to set the course for the expected interest rate cut in September and provide information on how much interest rates will fall in the following months.

The latest economic data reports showed that inflation continues to fall toward the Fed’s 2% target, consumer spending holds up, and unemployment is not increasing.

“The latest data flow is consistent with our forecast of a soft landing,” Michael Gapen, head of economics at Bank of America Securities, wrote in a note to clients on Friday.

Crypto Market Outlook

While technology stocks experienced a rapid crash, crypto assets performed sluggishly.

Total market cap fell 1.3% on the day to $2.17 trillion, but has remained range-bound since recovering above $2 trillion following the major market crash earlier this month.

Bitcoin failed to stay above $60,000 and fell to around $58,700 during the Asian trading session on Monday morning.

Ethereum fared a little better, gaining slightly during the day and trading at $2,642 at the time of writing.