Key Information

• Bitcoin, Ether and most other cryptocurrencies have dropped sharply due to upcoming Fed policy signals.
• The July FOMC meeting minutes will be released on August 20, and Powell’s Jackson Hole speech will follow on August 22, potentially clarifying the timing of any rate cuts.
• There are eight major concerns involving tariffs and inflation risks that suggest against a September rate cut.

Market Dynamics

Cryptocurrency valuations, alongside related stocks, took a downturn as traders prepared for pivotal Federal Reserve updates. Key moves in the crypto market included:

• Bitcoin fell by 3.2% to below $114,000.
• Ether decreased by 5.3% to below $4,200.
• XRP experienced a decline of 6.2%, and Cardano’s ADA slid by 8%.
• The broader cryptocurrency market decreased by approximately 3.2%.

Upcoming Fed Insights

The Fed’s forthcoming releases and speeches could indicate how they plan to handle future rates. Key highlights include:

• The impact of tariffs is being felt, but companies can’t absorb the costs indefinitely without passing them onto consumers.
• Inflation data remains stubbornly high despite some signs of cooling.
• U.S. businesses signal that they might need to shift tariff costs downstream, potentially accelerating consumer inflation and making a September cut unlikely.

Investors will be keeping a close eye on how these factors unfold as they affect both cryptocurrency and traditional stock markets.