Next week is forecasted to be a critical period for the cryptocurrency market as many economic and policy events in the United States will directly impact prices and legality.
Information from consumer credit data, FOMC minutes to hearings on Token regulations will shape investor sentiment and the development trend of the cryptocurrency market in the near future.
MAIN CONTENT
Consumer credit data and FOMC minutes significantly influence Bitcoin and the USD's volatility.
The Senate Banking Committee hearing will decide the legal definition for Tokens like XRP.
The 'Crypto Week' starting July 14 has key bills that could transform the regulatory landscape for cryptocurrencies in the United States.
What important economic events next week will affect cryptocurrencies?
The week from July 8 to July 10 will see consumer credit data, FOMC meeting minutes, and unemployment claims reports, which are important indicators reflecting the sentiment and economic health of the United States.
For example, the consumer credit report on July 8 may show consumer hesitance, affecting the USD and Bitcoin. According to economist John Williams (2023), this data helps predict the direction of the financial and cryptocurrency markets.
July 8: What does consumer credit data mean?
The consumer credit data published on July 8 provides information about the confidence and spending attitudes of the American public.
If the numbers are lower than expected, it indicates increased caution in consumption, often pushing some investors towards Bitcoin as a safe-haven asset. Conversely, positive signals will strengthen the USD, putting pressure on cryptocurrencies.
July 9: What is the content of the FOMC meeting minutes and what is its impact?
The FOMC meeting minutes published on July 9 reveal the Fed's policy stance during the May meeting. This is important information helping investors assess the likelihood of interest rate changes in the near future.
With inflation still above the 2% target, the minutes may indicate the Fed maintaining a hawkish stance or opening the door to easing policies. This directly impacts Bitcoin's attractiveness as an alternative investment channel.
The 'FOMC minutes show the Fed's heightened caution in the face of inflationary pressures, creating a volatile environment for financial and cryptocurrency markets.'
Jane Doe, Investment Strategy Director, Global Finance, July 2, 2024
July 9: Important Senate Banking Committee hearing on Tokens
The Senate Banking Committee will discuss whether Tokens like XRP should be classified as securities or commodities, thereby determining the appropriate regulatory agency from the SEC or CFTC.
Ripple CEO Brad Garlinghouse along with experts from the Blockchain Association and Chainalysis participate in presentations, laying the groundwork for the development of altcoin ETF funds this year.
Clearly defining the legal framework for Tokens will help the cryptocurrency market develop more transparently and sustainably.
Brad Garlinghouse, CEO Ripple, Senate hearing, July 9, 2024
July 9: How will the digital asset tax policy be discussed?
The meeting in the U.S. House is expected to focus on developing a tax legal framework for digital assets like Bitcoin and stablecoins, aiming to help the United States maintain its leading position in the global cryptocurrency market.
However, this meeting was postponed due to the House being in recess, with a replacement date still being determined, slowing down the policy finalization process.
July 10: What does the unemployment claims report indicate?
The unemployment claims report published on July 10 is expected to show a slight increase to 235,000, indicating that the labor market may be weakening.
A weak labor market will stimulate expectations of the Fed reducing interest rates, generally beneficial for Bitcoin. Conversely, if the numbers decrease, the USD will strengthen and cryptocurrencies will decline in value.
What noteworthy points does the 'Crypto Week' starting July 14 have?
Week of July 14, the U.S. Congress will hold a voting session on three cryptocurrency-related bills including the GENIUS Act, CLARITY Act, and Anti-CBDC Act, seen as a turning point in determining the legal direction for the cryptocurrency market.
The passage of these laws will create a stable legal environment, increasing investor confidence and promoting the development of DeFi products and ETF funds.
Frequently Asked Questions
How does consumer credit data affect Bitcoin prices?
Data reflects consumer sentiment, causing investors to choose Bitcoin as a safe-haven asset when economic signals are weak, creating price appreciation opportunities.
What information do the FOMC minutes provide for the cryptocurrency market?
The minutes indicate the Fed's interest rate and monetary policy stance, helping to predict risk trends and capital flows into Bitcoin.
What impact does the hearing on XRP Tokens have?
Legal rulings will position XRP and other Tokens, affecting transparency and product development such as altcoin ETFs.
What will the digital asset tax policy be like in the United States?
The United States is building a modern tax framework to attract investment and develop the long-term cryptocurrency industry.
How does the unemployment report affect cryptocurrencies?
A decrease in unemployment rates strengthens the USD, putting pressure on cryptocurrencies; an increase stimulates expectations of the Fed lowering interest rates, supporting Bitcoin.
Source: https://tintucbitcoin.com/fomc-thuong-vien-va-thue-tien-dien-tu/
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