The impact of US macroeconomic events on the cryptocurrency market, particularly Bitcoin, has become increasingly evident as the market continues to display volatility. In contrast to the previous year, where their influence waned, 2024 has seen a resurgence in the significance of macroeconomic developments on crypto assets. The current price of Bitcoin, lingering below $60,000, has raised concerns due to the lower highs observed on the daily chart and a shift in market sentiment from fear to extreme fear.

This week, investors are closely monitoring several key events on the US economic calendar that have the potential to incite volatility and influence market sentiment. Specifically, three events stand out as potential triggers for significant price fluctuations in Bitcoin and other cryptocurrencies.

The release of the minutes from the Federal Reserve’s July Federal Open Market Committee (FOMC) meeting on Wednesday will provide valuable insights into the Central Bank’s stance on interest rates and monetary policy. Depending on the tone taken, the financial markets, including cryptocurrencies, could experience notable movements. A dovish stance suggesting potential rate cuts might bolster assets like Bitcoin, while a hawkish tone could precipitate a sell-off.

Thursday’s weekly report on initial jobless claims by the US Bureau of Labor Statistics offers insight into the labor market’s health and may impact investor sentiment. Fewer jobless claims than expected may indicate a robust economy, potentially driving investment towards riskier assets like cryptocurrencies, while higher claims could raise concerns about a slowing economy and lead to declines in Bitcoin and crypto prices.

Furthermore, the market is eagerly anticipating Fed chair Jerome Powell’s speech at the annual Jackson Hole Economic Policy. His commentary on the economy, inflation, and monetary policy has the potential to shape market expectations and influence the direction of Bitcoin and cryptocurrency prices.

The current consolidation of Bitcoin within a symmetric triangle formation indicates that the next directional bias will only be revealed after a breakout occurs. The Relative Strength Index (RSI) suggests that Bitcoin may remain range-bound in the short term, with a lack of conviction among the bulls. Volume profiles reinforce this suggestion, indicating hesitancy on both bullish and bearish sides. Additionally, the Awesome Oscillator (AO) position in negative territory further accentuates the lack of a clear trend.

As the upcoming US macroeconomic events this week have the potential to cause significant movements in the crypto market, investors are eagerly awaiting crucial data and policy announcements. The impact of these US macro events on Bitcoin and cryptocurrencies will be closely monitored, considering the intertwined nature of trends in digital assets with the traditional financial markets. The influence of macroeconomics on the crypto market should not be overlooked.

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