Key inflation metrics, such as U.S. CPI, PPI, and Core PCE, will also determine the trajectory of the crypto market.
August is packed with pivotal crypto events that can significantly impact the trajectory of the entire market. Although the first two days of the month had a slightly bearish tone, with massive liquidation on the late July and early August events, seasoned traders are anticipating better results. However, that entirely depends on the events and how they shape the investors’ trading momentum. Let’s discuss the top events and their potential impact.
Top 4 Crypto Events to Determine Market Trajectory
August 1 had a major macro crypto trigger, as multiple events came one after another. With Trump’s tariff updates and post-rate cuts impacts, volatility remained high. The same persisted for August 2, with the July Non-Farm Payrolls and unemployment rate, crashing the entire crypto market. However, the upcoming events could either change that or worsen it.
Donald Trump has made prominent changes to the tariff on 70+ countries, including the imposition of a 25% tariff on India. Mostly, newly issued reciprocal trades will go into effect on August 7.
Now, the 90-day China-US tariff ends on August 12. If there’s no further extension by then, the imports would revert to the 30% baseline and even higher levels. Experts like Atlas believe a panic in FX and commodities could form.
This also affects the Bitcoin price, causing it to dip, affecting the broader crypto market.
U.S. CPI data is a key inflation metric and is closely watched globally. If the CPI comes soft, it is a bullish factor for the digital assets, but a contrary result would bring a crypto selloff. For now, the experts believe that the CPI will come around 2.9% and 3.0% core.
U.S. PPI would follow up the next day, August 14. It’s also important as it gives clarity on the inflation narrative before the Fed commentary. As the Fed kept the rates unchanged, there’s anticipation of cuts in September, and this metric could help.
The Jackson Hole Economic Symposium, an annual gathering of global central bankers, economists, and financial leaders, would take place between August 21 and 23. The Federal Reserve Bank of Kansas City organizes the event, and it is alleged that Jerome Powell drops a major term signal in this gathering.
Investors react to it like they do with the FOMC meeting, where Powell’s dovish talk could pump crypto prices.
Core PCE is another Fed inflation metric; if the GDP is below 1% and PCE is near 3%, it could suggest underlying inflation, which would delay Fed rate cuts. A reading below 2.8% would suggest cooling inflation per Reuters, boosting the crypto market.
Overall, the month was packed with important metrics and crypto events. Experts such as Atlas suggest continuous monitoring of these events, as high volatility could form, as the ups and downs can influence the value of the digital assets.
