The host of popular YouTube channel Coin Bureau says that upcoming economic data coming out over the next month could have a big effect on crypto markets.
In a new video, the analyst known as Guy tells his 2.09 million subscribers that the digital asset market faces several wild cards that could cut its recent rally short.
The first is the Personal Consumption Expenditures (PCE) index, a measure of the changes in prices that people in the US pay for goods and services.
“The first is the PCE figures for July which will come out on the 26th of August. Given that the PCE is the Fed’s favorite inflation figure, a high reading here could cause the markets to crash in anticipation of an aggressive hike.”
Guy says the second wild card is the Gross Domestic Product (GDP) for Q2 slated for late this month.
“The second wild card is actually scheduled for the same day and that’s the revised GDP figures for Q2 which will also be published on the 26th of August. Circle it in red, folks.
If these GDP figures are revised up, meaning the US is no longer in a technical recession, this could embolden the Fed to raise interest rates even more.”
The next is the annual Jackson Hole Economic Symposium where prominent personalities in central banking and other sectors discuss global economic issues.
“The third wild card to watch out for also takes place at the end of August and that’s the Jackson Hole Symposium, which will take place between the 25th and 27th of August. For those who don’t know, the Jackson Hole Symposium is a central banking conference and the overlap of this conference and the two statistics I just mentioned means we’re likely to get some sort of reaction from Jerome in real time.”
He says that the outcome of the PCE, GDP and the Jackson Hole Symposium could affect the decisions of U.S. Federal Reserve Chair Jerome Powell, which will have a cascading effect on the crypto market.
“If the stats are bad and Jerome is mad, the crypto market will be sad. Then again if Jerome is serious about not giving any forward guidance, then he may keep his thoughts to himself long enough for the crypto market to continue its recovery rally which is being led by the one and only Ethereum.”
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