The cryptocurrency community is looking at three key dates this month that could have a major impact on the cryptocurrency market’s and the wider US economy this year.
On 13 July, the monthly consumer price index (CPI) and inflation figures will be published. From 26.-27. July, a decision will be made on whether to raise interest rates even further, but on July 28, US plans for the 2nd quarter of 2022 will tell us whether the country is in a technological recession.
July 13: Inflation Mark, CPI
Micahel van de Poppe, CEO and founder of EightGlobal’s cryptocurrency advisory and education platform, told 614,300 Twitter followers on July 4 that it was “next in line for next week’s consumer price index,” adding bumpy forecasts for Bitcoin if it exceeded $ 20,000 price. .
Foggy image, but would watch $ 28K for #Bitcoinif there is a possibility that you can turn around $ 20K (and in between I would watch $ 23K).
All eyes on next week’s CPI and the Fed, but that would make sense. image.twitter.com/pcWwEmkoHT
– Michaël van de Poppe (@CryptoMichNL) July 4, 2022
Co-founder of The Crypto Academy, known on Twitter as “Wolves of Crypto”, said His followers followed the date, adding that the consumer price index was falling below expectations “could be the impetus for the dead cat jump” for Bitcoin.
“All eyes on the consumer price index on 13 July. If the consumer price index falls, it will be the stimulus for the jump of death.
The consumer price index is one of the criteria for assessing how inflation develops by measuring the average change in consumer prices compared to a typical basket of goods and services for household use.
Continued rising inflation could affect the demand for cryptocurrencies, as consumers will have to spend more to survive than before.
Interestingly, while Bitcoin was created amid high inflation in the wake of the global financial crisis of 2008, and described as a hedge of inflation due to steady supply and scarcity, recent years have seen the cryptocurrency keep pace with traditional technology stocks, less than proof of inflation. .
The next estimated release of the consumer price index is expected on July 13, 2022 from the US Department of Labor.
According to Trading Economics, the current consensus on inflation in June, or the CPI, is 8.7%, slightly higher than 8.6% in May.
26.-27. July: Fed rate hike
After raising interest rates by 75 basis points in June, the single most significant monthly increase in 28 years, interest rates are expected to rise further after the Federal Open Market Committee (FOMC) meeting later this month.
Interest rate hikes are one of the main tools used by the US Federal Reserve and the US Federal Reserve to control inflation by slowing down the economy. Rising interest rates lead to higher borrowing costs, which can reduce consumer and business spending, and lending.
It can also put pressure on riskier asset prices, such as cryptocurrencies, where investors can start earning a decent return just by investing their money in interest-bearing accounts or low-risk assets.
This month, the FOMC is expected to decide whether to impose a 50 or 75 basis point increase. Charlie Bilello, founder and CEO of Compound Capital Advisors, placed his bet on the higher amount.
The Central Bank’s expectations for interest rate hikes at the next 4 FOMC meetings …
-July: 75 points increase to 2.25% -2.50%
-Sep: 50 bps increase to 2.75% -3.00%
-Nov: 50 basis point increase to 3.25% -3.50%
-Dec .: 25 points increase to 3.50% -3.75%
– Charlie Bilello (@charliebilello) June 28, 2022
July 28: Are we in recession?
On July 28, the US Federal Bureau of Economic Research (BEA) will release a preliminary estimate of US GDP for the second quarter of 2022.
After recording a -1.6% decline in GDP in the first quarter of 2022, the GDPNow measure of the Central Bank of Atlanta now expects a -2.1% contraction in economic growth for the second quarter of 2022.
The second quarter in a row of declines in GDP would put the United States in a “technical recession”.
Connected: On the brink of recession: Can Bitcoin survive its first global economic crisis?
If the US economy is officially marked as a recession, expected to begin in 2023, Bitcoin will face its first recession and is likely to see a continued decline in parallel with technology stocks.
Despite bleak macroeconomic forecasts, some of the leading experts in cryptography see the recent massive cryptocurrency market crash as a positive sign for the industry in general.
Encryption expert Erik Voorhees, co-founder of Coinapult and CEO and founder of ShapeShift, said the current cryptocurrency crash was “least of concern” for him, as it is the first cryptocurrency crash caused by major non-cryptocurrencies.
The previous crashes were all blisters, unrelated to the big world.
This is the first cryptographic collapse that is clearly external; as a result of non-cryptocurrency macroeconomic factors.
Maybe this is why of all the crashes, this has been the least worrying for me.
– Erik Voorhees (@ErikVoorhees) July 1, 2022
Alliance DAO core contribution Qiao Wang did similar comments to his 131,200 followers and pointed out that this is the first round where the main bear issue was “external factor”.
“People who are worried about macro cryptocurrencies realize how bullshit this is right?
“This is the first round where the main bear is an outside factor. In previous rounds, it was endogenous, such as Mt.Gox (2014) and ICOs (2018), “he explained.
Mail Bonus – #Cryptocurrency #community #watches #macroeconomic #events #tip #cryptocurrency #July