On August 1, there was a significant macroeconomic trigger for cryptocurrencies, as several events unfolded. With Trump's tariff updates and the subsequent impact of rate cuts, volatility remained high. The situation remained similar on August 2, with the July non-farm payrolls and the unemployment rate, which crashed the cryptocurrency market. However, upcoming events could change or worsen this situation.
◽90-day tariff truce between China and the United States – August 12
Donald Trump has implemented significant changes to tariffs for more than 70 countries, including imposing a 25% tariff on India. Most of the new reciprocal trade agreements will take effect on August 7.
Now, the 90-day tariff between China and the U.S. expires on August 12. If it is not extended by then, imports would revert to the baseline level of 30% and even higher levels. Experts like Atlas believe panic could arise in currencies and commodities.
This also affects the price of Bitcoin, causing its decline and thus impacting the cryptocurrency market in general.
◽U.S. CPI and PPI – August 13 and 14
U.S. CPI data is a key inflation metric and is closely monitored globally. If CPI weakens, it represents a bullish factor for digital assets, but an opposite outcome would trigger a wave of cryptocurrency sales. For now, experts believe CPI will be around 2.9% and core CPI at 3%.
The U.S. PPI will be released the next day, August 14. It is also important as it provides clarity on the inflation narrative before the Fed's commentary. Since the Fed kept rates unchanged, rate cuts are anticipated in September, and this metric could be useful.
◽Jackson Hole Symposium – August 21 to 23
The Jackson Hole Economic Symposium, an annual meeting of central bankers, economists, and global financial leaders, will take place from August 21 to 23. The Kansas City Federal Reserve Bank organizes the event, and it is alleged that Jerome Powell drops an important deadline signal at this meeting.
Investors react as they do to the FOMC meeting, where Powell's moderate tone could boost cryptocurrency prices.
◽Core PCE – August 29
Core PCE is another inflation metric from the Fed. If GDP is below 1% and PCE approaches 3%, it could indicate underlying inflation, which would delay Fed rate cuts. A reading below 2.8% would suggest cooling inflation, according to Reuters, which would boost the cryptocurrency market.
Overall, the month was filled with important metrics and events related to cryptocurrencies. Experts like Atlas recommend continuous monitoring of these events, as high volatility may arise, given that fluctuations can influence the value of digital assets.
