Consumer Price Index will show July inflation data. If CPI comes in cooler, crypto rallies (Fed won't raise rates). If it's hot, expect a pullback as rate-hike odds rise.
Core CPI (ex-food/energy) below 2.8% equals bullish for crypto. Core CPI above 3.2% equals bearish. The difference between these scenarios could move Bitcoin $3,000-5,000 in hours.
Federal Reserve meeting minutes reveal how hawkish or dovish the Fed really is. Soft language supports crypto, hawkish talk triggers selling. Markets typically overreact on initial release.
These events determine whether the Fed cuts rates (crypto boom) or pauses (crypto stall). A cut signals lower borrowing costs and more risk appetite. No cut equals consolidation or pullback.
Hold positions through CPI if you're bullish. Trim holdings if data looks hot. For FOMC, watch the language around rate expectations. Prepare dry powder for dips or capital for rallies.
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