The host of the popular YouTube channel Coin Bureau says that the upcoming economic data coming out over the next month could have a significant impact on the cryptocurrency markets.
In a new video, an analyst known as Jay tells his 2.09 million subscribers that the digital asset market faces several wild cards that could reverse its recent rally.
The first is the Personal Consumption Expenditure (PCE) index, which is a measure of changes in the prices that people in the United States pay for goods and services.
“The first is the July PCE numbers which will be released on August 26. Given that PCE is the Fed’s preferred inflation number, a higher reading here could cause markets to crash in anticipation of a sharp rally.”
Jay says the second base card is Q2 GDP due to be released later this month.
The second wild card is scheduled for the same day and is the revised GDP numbers for the second quarter which will also be published on August 26th. Circle it in red, folks.
If these GDP numbers are revised upwards, meaning the US is no longer in a technical recession, that could encourage the Fed to raise rates further.”
Next is the annual Jackson Hole Economic Symposium where leading figures in central banks and other sectors discuss global economic issues.
“The third wild card to watch out for will also take place at the end of August and is the Jackson Hole Symposium, which will take place August 25-27. For those who don’t know, the Jackson Hole symposium is a central banking conference and the overlap between this conference and the two statistics I just mentioned means that we’re likely to get some kind of reaction from Jerome in real time.”
He says the results of the PCE, the GDP and the Jackson Hole symposium could influence the decisions of US Federal Reserve Chairman Jerome Powell, which will have a ripple effect on the cryptocurrency market.
“If the stats are bad and Jerome is crazy, the crypto market will be sad. Then again, if Jerome is serious about not offering any future guidance, he may keep his thoughts to himself long enough to continue the crypto market’s recovery that is led by only Ethereum.”
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