This week is shaping up to be a wild ride for the crypto market. Get ready for some serious volatility!
A Week of Big Announcements
The Fed Chair, Jerome Powell, is speaking next Tuesday, and everyone’s on tenterhooks. His words could significantly impact the crypto market. Plus, we’ve got a bunch of important US economic data coming out:
- Wednesday: Existing home sales data.
- Thursday: Existing home sales figures (another look at the housing market), durable goods orders, and – the big one – the second estimate of Q2 US GDP. This will give us a clearer picture of whether the economy is truly recovering or facing stagflation.
- Friday: August’s Core PCE inflation index (the Fed’s favorite inflation measure) and the preliminary University of Michigan Consumer Sentiment Index.
All this data could heavily influence investment flows into digital assets.
Powell’s Words Carry Weight
Analysts will be dissecting every word of Powell’s speech, looking for clues about the October and December meetings. The crypto market is bracing itself for some major swings. We already saw a significant drop, with over $75 billion wiped off the market in just a few hours. On X (formerly Twitter), the debate rages: is this volatility a risk, or an opportunity? One user, “Crypto Ex-Insider,” noted that Powell’s speeches often move markets more than the data itself – a single shift in tone could easily reprice trillions.
Bitcoin’s Dip: A Repeat of History?
Bitcoin has dropped to its lowest point in ten days. Trader Merlijn’s analysis suggests that Bitcoin’s long-term chart is mirroring past cycles. It seems to show a pattern: major bull runs (like in 2017 and 2021) have included a “mid-cycle trap”—a sharp correction that shakes out weaker investors before the price rockets again. This year might be following the same script.