The host of popular YouTube channel Coin Bureau said that the economic data coming over the next month could have a big effect on the crypto markets.
In a new video, the analyst known as Guy tells his 2.09 million followers that the digital asset market is facing several wild cards that could cut short its recent rally.
The first is the Personal Consumption Expenditure (PCE) Index, a measure of changes in the prices people in the United States pay for goods and services.
“First is the PCE numbers for July which will be released on August 26. Given that the PCE is the Fed’s preferred inflation number, a high reading here could cause markets to collapse in anticipation of an aggressive rise.
Guy says the second wildcard is gross domestic product (GDP) for the second quarter forecast for the end of this month.
“The second wildcard is actually scheduled for the same day and that is the revised GDP figures for the second quarter which will also be released on August 26. Circle it in red, folks.
If these GDP figures are revised upwards, meaning the US is no longer in a technical recession, this could encourage the Fed to raise interest rates even further.
Next up is the annual Jackson Hole Economics Symposium, where leading figures from central banking and other industries discuss global economic issues.
“The third wild card to watch also takes place at the end of August and it is the Jackson Hole Symposium, which will take place between August 25th and 27th. For those who don’t know, the Jackson Hole Symposium is a central banking conference and the overlap of that conference and the two statistics I just mentioned means we’re probably going to get some sort of reaction from Jerome in real time .
He says the PCE, GDP, and Jackson Hole symposium results could affect the decisions of US Federal Reserve Chairman Jerome Powell, which will have a cascading effect on the crypto market.
“If the stats are bad and Jerome is crazy, the crypto market will be sad. Then again, if Jerome is serious about not giving forward guidance, then he can keep his thoughts to himself long enough for the crypto market to continue its recovery rally which is led by the one and only single Ethereum.
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