TL;DR
- The FOMC minutes, set to be released on November 26, 2024, will provide insights into the Federal Reserve’s discussions on monetary policy, potentially influencing market sentiment and crypto prices.
- The PCE inflation data for October, to be released on November 27, 2024, will be closely watched by investors as it could impact Bitcoin’s appeal as an inflation hedge and overall market sentiment.
- The upcoming crypto expiry on November 29, 2024, involving $9.13 billion in Bitcoin options and $1.24 billion in Ethereum options, could spark significant market volatility.
The Federal Open Market Committee (FOMC) minutes, set to be released on November 26, 2024, are highly anticipated by crypto traders and investors. These minutes will provide insights into the Federal Reserve’s discussions and decisions regarding monetary policy, including interest rate cuts and economic outlook.
The minutes are expected to reveal how policymakers assessed the economy leading up to the November meeting and any potential shifts in their stance on the 2% inflation target. With President-elect Donald Trump’s election win and Elon Musk advocating for reduced federal spending, the FOMC minutes could significantly influence market sentiment and crypto prices.
PCE Inflation Data: Gauging Inflation Trends
On November 27, 2024, the Personal Consumption Expenditures (PCE) inflation data for October will be released. This data is crucial for understanding inflation trends and the Federal Reserve’s policy direction.
The monthly PCE inflation is expected to remain at 0.2%, while the year-on-year figure is anticipated to increase to 2.3% from 2.1% in September. Core PCE inflation, which excludes food and energy prices, is likely to edge up to 2.8% from 2.7% last month.
These figures will be closely watched by investors, as they could impact Bitcoin’s appeal as an inflation hedge and influence overall market sentiment.
Crypto Expiry: Potential Market Volatility
The upcoming crypto expiry on November 29, 2024, is another key event that could affect crypto prices. A massive $9.13 billion in Bitcoin options and $1.24 billion in Ethereum options are set to expire, with a combined market value of over $10 billion.
This expiry could spark significant volatility in the market, with Bitcoin’s “max pain” price sitting at $77,000 and Ethereum’s at $2,800. Market experts, including Peter Brandt, have warned of a possible selloff, although they remain optimistic about crypto’s long-term future.
Traders will be closely monitoring macroeconomic factors like the US PCE inflation data and the FOMC minutes as the expiry date approaches.
As the crypto market braces for these key economic events, traders and investors must stay informed and prepared for potential market shifts. The FOMC minutes, PCE inflation data, and crypto expiry are set to play pivotal roles in shaping market sentiment and crypto prices this week.