All Eyes on the Fed, What Should Crypto Investors Do?

Todaysgist, News – The stock market has shown recovery in the last few days’ trading. But the recovery does not apply to the crypto market. Bitcoin and friends are still experiencing heavy pressure.

Crypto market volatility could increase again as all eyes will be on the Federal Reserve’s (the Fed) Open Market Committee meeting and minutes this week. There are also a number of economic reports to come out.

Quoting cryptopotatoMonday (19/8/2024), the first economic event this week is the Fed meeting which takes place on Wednesday, where the minutes of the July meeting and policy decisions will be discussed.

It offers an in-depth look at the Fed’s policy outlook and includes details on the committee members’ positions on what monetary policy to pursue. There is also insight into their views on the state of the economy and future trends.

Then, the August S&P Global US Manufacturing and Services PMI Reports will be released on Thursday. These reports provide business conditions in the US manufacturing and services sectors, which are a snapshot of the overall state of the economy.

Policy makers use this report as a forward-looking indicator that reflects trends in the economy as a whole.

Crypto Market Outlook

While tech stocks have rebounded from their lows, crypto assets are still sluggish.

The total crypto market capitalization fell 1.3% on Monday to $2.17 trillion, though it remains within a range since recovering more than $2 trillion after a major market decline earlier this month.

Bitcoin failed to hold above USD 60,000 and has fallen back to around USD 58,700 during Monday morning’s Asian trading session.

Ethereum fared slightly better, rising slightly on the day and trading at USD 2,642 at the time of writing.