Cryptocurrencies and related shares expanded losses Tuesday as dealers supported the release of Fed’s FOMC minute Wednesday and Fed -Chairman Jerome Powell’s Jackson Hole talk Friday.
Bitcoin dropped 3.2% in the last 24 hours to slip below $ 114,000, while ether dropped 5.3% to less than $ 4,200. The XRP tumbled 6.2%, Cardanos Ada slipped 8%, and the wider crypto market decreased 3.2%.
Shares of crypto-related companies, such as Bitcoin mining workers, crypto exchanges and digital asset tax companies, suffered even greater losses, with Mara, Coin and MSTR shut down today’s regular session down 5.7%, 5.8%and 7.4%.
In contrast, US stocks suffered smaller: Dow ended flat, the S&P 500 fell 0.59%and Nasdaq slipped approx. 1.5%. The difference emphasizes how digital assets that are very dependent on cheap liquidity are more exposed to shifts in the rate expectations than traditional stocks.
Investors are now facing a central calendar.
On August 20 at 1 p.m. 14.00 A releases bold minutes from the FOMC meeting, which is held 29 to 30 July, providing insight into the decision makers’ customs and inflation debates. From August 21 to August 23, central bankers gather for Jackson Hole Symposium, with Powell’s keynote speaker for August 22 at. 10 et. Together, the protocol and Powell’s speech could define the market’s expectations for the September policy meeting.
The Tariffen’s delayed bite
Many companies have recorded customs costs to protect the market share, but analysts warn that they cannot do so indefinitely. Once they have moved on to consumers, these costs could lead to prices higher and force bold to wait before cutting.
Sticky Inflation Data
Despite some cooling, inflation meters remain elevated. The producer price index, an important wholesale measure, has been warmer than expected, suggesting sustained pressure that complicates every case for aggressive easing.
Business boundaries
US leaders have signaled that they will eventually be forced to change customs costs downstream. If this happens, consumer inflation can accelerate in the coming months, which will make a clip in September work too soon.
Mixed financial signals
The US economy shows both slower job growth and elastic demand for consumer. This uneven image could encourage Powell to argue for patience until Fed has clearer evidence that growth can withstand customs costs.
Policy uncertainty
Tariffs cross each other with tax and trade policies in unpredictable ways. This complexity increases the risk of erroneous errors, making a Hawkish tone on Jackson Hole more likely.
Lessons from the story
The Tariffschockers in 2018–2019 produced delayed but meaningful inflation, which got bold caution. Powell can draw on the precedent to justify holding back this time.
Forward indicators
The upcoming release of fresh financial data, including Thursday’s release of preliminary August data on manufacturing and service activity, could show customs-related cost pressure building. Powell could point to these as another reason for caution.
Internal divisions
Minutes from the July -FOMC meeting can reveal a split inside the bold. With Hawks focused on inflation and pigeons that emphasize jobs, Powell can emphasize the need for consensus, which often favors to wait.
For crypto, the effort is ready. Higher for longer prices slows down liquidity, which burns speculative contexts, raises financing costs for miners and weighs on exchange activity. If powell signalizes caution, sale in tokens and crypto -blended stocks can be elaborated. However, a Dovish surprise can offer the spark to a rebound.
