The Crypto Calendar: economic events that matter

Crypto and other financial markets are fickle as the wind and there’s no knowing for sure where prices will go from one day to the next. But some events tend to trigger the markets more than others. Interest rate announcements from the Federal Reserve Bank and the latest Consumer Price Index (CPI) numbers are on every serious investor’s radar, and you too can make better-informed investment decisions by learning how the markets react to these and other similar events. 

Stay updated with market movements and jot down the following important economic dates in your September calendar. 

🔍 An August recap 

Bitcoin traded in the $29,000-$30,000 range for most of August, until a sudden sell-off caused the price to drop to around $26,000 at the end of the month. Ethereum (ETH) and most other cryptocurrencies followed a similar pattern to the market leader, dropping in price as volatility returned to the markets after a relatively muted few weeks. Analysts struggled to pinpoint one specific cause, but the dip followed closely on an article by the Wall Street Journal about SpaceX having written down its bitcoin holdings. 

The US CPI numbers for July, released on 10 August, showed an increase in prices of consumer goods of 3.2% since last July, which was slightly lower than the 3.3% expected, but still above the Federal Reserve Bank’s aim of 2%. The CPI numbers failed to make any significant impact on the large-cap cryptocurrencies. 

Bitcoin and other cryptocurrencies rallied briefly at the end of the month, which analysts linked to a US court ruling that the Securities Exchange Commission (SEC) was wrong to reject Grayscale’s BTC ETF application. 

What? August US Consumer Price Index (CPI) numbers

📅  When? 13 September 

Why is it relevant?

The CPI Index is one of the key indicators of inflation in a specific country. It measures the change in price of a basket of consumer goods and services, including food prices, vehicle prices and the cost of rent, among other things. 

What? Federal Open Markets Committee (FOMC) meeting

📅 When? 19-20 September 

Why is it relevant?

The FOMC in the US holds eight scheduled meetings per year to review economic and financial conditions. It’s also in this meeting where policymakers decide the way forward with interest rates hikes. Investments that are considered riskier, such as cryptocurrencies and stocks, have in the past performed better in an environment where interest rates are low. 

What? UK Consumer Price Index 

📅 When? 20 September  

Why is it relevant?

Many countries around the world are currently grappling with inflation, and just like in the US, policymakers in the UK are watching the CPI Index to see whether rate hikes are curbing spending and bringing down prices of consumer goods, meaning that it’s working. 

The information contained in this email should not be construed as a solicitation to trade. All opinions, news, research, analysis, prices or other information is provided as general market commentary for information purposes only and is not investment advice or recommendation. Luno always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency