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Apart from Fed Chair Powell’s speech, investors will closely watch BOJ plans of rate hikes as the Yen carry trade unwinding led to major havoc in the market last month.
This week is likely to be more eventful for the crypto market amid the broader macro developments taking place ahead. The US Federal Reserve is set to have its monetary policy meeting ahead on Thursday, August 22. Thus, all eyes will be on Fed Chair Jerome Powell’s speech and his take on the upcoming rate cuts expected next month in September.
On Tuesday, August 20, the Australian Federal Reserve will have its monetary policy meeting. Similarly, the FOMC meeting will happen on Wednesday, August 21, with analysts having positive expectations from the US central bank following the cooling inflation data for the month of July 2024. Later this week on Friday, August 23, Fed Chair Powell will be speaking at the Jackson Hole meeting.
Furthermore, all eyes will be on the Bank of Japan and whether or not it proceeds with the rate hike decision. Last month, the unwinding of the Yen Carry trade sent huge jitters across the global market as well as the broader crypto market. This shows that the crypto market has been reacting to the global macro developments in recent months.
Bitcoin Investing Essentials, A Sneak Peek at This Week’s Biggest Events (8/19-8/25)
This week is the most important macro week, with the annual Jackson Hole global central bank meeting starting this Thursday. The news related to the yen rate hike and the dollar rate cut is the…
— Greeks.live (@GreeksLive) August 19, 2024
Bitcoin Headwinds Continue amid Global Macro Conditions
Amid the growing scare over the US economic conditions, Bitcoin continued to face the headwinds facing multiple rejections at $60,000 levels. during the month of August so far, the BTC price is down by 9% against the 1% gain on the global MSCI index as well as the surge in the yellow metal Gold to an all-time high level of $2,500.
Furthermore, with the US government moving their $600 million worth of BTC last week, it has added to further selling pressure. Currently, the US government still holds over $12 billion worth of BTC. Over the last month, the US government has moved a total of 40,000 Bitcoins sending jitters in the market.
On the other hand, the Bitcoin funding rate has turned negative at levels not seen since 2022, flashing at the possibility of a correction under $50,000. This shows that speculative demand in BTC has ebbed significantly.
