Cryptocurrency market investors this week will pay attention to the Federal Open Market Committee (FOMC) meeting scheduled to take place on August 1, 2024 which will provide clues regarding the (Fed's) monetary policy plan.
However, it should be noted that there is an 89% probability that the Fed will announce a 25 basis point interest rate cut in September 2024 and additional cuts in November and December are also possible due to the recent decline in inflation.
Fed Chairman Jerome Powell's speech will also be the focus as comments can trigger price increases on the crypto market while statements can weaken sentiment.
Another important event is the release of United States (US) unemployment data for July 2024 on August 2, 2024 which could allow investors to gain important insights into the health of the labor market plus it will impact policy rate decisions.
It is also predicted that US job growth is estimated at 190,000 in July 2024 which is down from 206,000 in June and this means the data will be important in understanding the trajectory of the labor market as well as its influence on Fed policy decisions.
As the crypto market gears up for the milestone, expectations and speculation are mounting for a potential interest rate cut combined with Powell's remarks and jobs data that could set the course for broader market movements.
The broader market response to the event will provide valuable insights into its resilience and adaptability and in other words, this week could mark a turning point that could highlight the interconnectedness of traditional financial policy as well as digital asset markets.
