August Crypto Economic Calendar: Are you watching?

July saw significant crypto market volatility, with a substantial Bitcoin sell-off by the German government and Mt. Gox’s creditor repayments coinciding with price fluctuations. Here’s a recap, plus a preview of August’s potential market influencers. 

What happened in July? 

Crypto prices have been on a wild ride lately. Prices retraced around the time the old Mt. Gox exchange started paying back its creditors, but then went the other direction following the reported assassination attempt on Donald Trump on 13 July. Bitcoin jumped from about $59,000 before the incident to $68,000 in just a week after that. Ethereum wasn’t far behind, breaking $3,500 for the first time since June. XRP also had a good run in July, climbing 25% over the month with a 14% boost in the last couple of weeks.

Bitcoin Cash had a rough time on the back of a large sell-off mid-month, but recovered towards the end of the month. On the other hand, many of the smaller-capped cryptos, the so-called alt-coins, saw outsized gains in July, with Solana, Cardano, and Avalanche all recording double-digit growth.

A lot of buzz is coming from crypto getting caught up in politics as the US presidential campaign heats up. Trump’s been courting the crypto crowd, openly backing cryptocurrency. He even gave a big speech at the Nashville Bitcoin Conference on 27 July. The big question now is: Can crypto keep this upward momentum going?

What’s happening in August? 

What? US unemployment rate

?  When? 2 August 

Why investors care: The US unemployment rate is a key indicator of economic health, influencing consumer spending, corporate profits, and monetary policy decisions.

What happened last month? The unemployment rate, at 4.1%, changed little in June. 

What? US inflation numbers

?  When? 14 August

Why investors care: Inflation numbers are like a financial health check-up. They show us how our money’s value is changing over time. When these numbers shift, it’s not just about prices – it affects how people and businesses plan for the future.

What happened last month? The core CPI barely moved last month, rising just 0.1%. This slowdown in inflation could influence the Federal Reserve’s stance on interest rates. It’s an encouraging sign, but investors will need to see if the trend lasts.

What? Democratic National Convention

?  When? 19 August- 22 August 

Why investors care: The US Democratic Party is set to reelect its presidential nominee after President Joe Biden stepped out of the race in July. Crypto has become a hot political issue as the November elections approach, with Donald Trump courting favor among crypto supporters.

What? Federal Open Market Committee minutes

?  When? 21 August

Why investors care:  Investors pay close attention to the FOMC minutes because they offer a peek behind the curtain of the Federal Reserve’s decision-making process. These detailed notes from the Fed’s meetings can reveal the committee members’ thoughts on the economy, inflation, and future interest rate moves. 

What happened last month? The Fed maintained its target federal funds rate at 5.25-5.5%, citing continued economic expansion and easing inflation, while remaining cautious about future rate reductions until inflation approaches the 2% target.

*This information is not intended to be nor does it constitute financial, tax, legal, investment or other advice; nor is it a call to trade. The information is intended as general market commentary for information purposes only. Before making any decision or taking any action regarding your finances, you should consult a qualified Financial Advisor.