The US economy and the cryptocurrency market are closely connected. Therefore, for crypto traders, it is really important to keep an eye on every US economic development.
In the previous week, the US market experienced a rise of 1.21%. Even though, at one point in the week, the market slipped to a low of $6,284.37, at the time of closing, it had raised to $6,388.64. During the same period, the crypto market saw a drop of around 1.66%.
This week is expected to be an eventful week for the US market. Here are the key events crypto traders should watch for.
The upcoming Federal Open Market Committee (FOMC) meeting will conclude on July 30, with Fed Chair Jerome Powell scheduled to deliver a press conference shortly thereafter.
Potential Crypto Market Impact:
If the Fed maintains its data-dependent stance and signals no immediate cuts, cryptocurrencies may experience muted upward movement. However, continued inflation pressures could reinforce crypto’s appeal as a hedge against currency debasement.
The advance estimate for US Gross Domestic Product (GDP) for the second quarter will also be released on July 30.
Potential Crypto Market Impact:
A robust GDP rebound could dampen expectations of near-term Fed easing, which may temporarily limit crypto upside. Conversely, it could also reduce recessionary fears and support broader risk appetite, including in digital assets.
The July employment report, including Non-Farm Payrolls (NFP) and the Unemployment Rate, is scheduled for release on August 1.
Potential Crypto Market Impact:
Weaker job growth and a modest uptick in unemployment could reinforce expectations of monetary easing later this year. Historically, such conditions have supported inflows into risk assets like Bitcoin and Ethereum, as investors reposition for lower real yields.
This week’s economic calendar presents multiple catalysts that could significantly influence short-term market direction. Traders and investors should closely monitor the tone of the Fed’s communication, the strength of economic output, and shifts in employment metrics.
In a macro-sensitive trading environment, understanding the implications of key US economic data has become essential for informed crypto investing. As the Fed balances inflation control with economic growth, digital assets may offer both risks and opportunities in response to shifting monetary dynamics.
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