US Market Faces Volatility Ahead of Major Crypto Events

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August is shaping up to be a decisive month for the cryptocurrency market, with several key economic and geopolitical developments expected to impact digital asset prices. Although the start of the month saw a downturn linked to macroeconomic news and market liquidations, upcoming events could either stabilise or further disrupt investor confidence. 

Tariff Truce Deadline – August 12
The 90-day trade truce between the United States and China is set to expire on August 12. Unless an extension is announced, tariffs may revert to higher levels, possibly above 30%. President Donald Trump has already proposed a 25% tariff on imports from more than 70 countries, including India, with enforcement set to begin on August 7. Analysts warn this could fuel volatility in foreign exchange and commodities markets, indirectly pushing Bitcoin prices downward.

Inflation Metrics in Focus – August 13-14
Investors are closely watching U.S. inflation data for signals on Federal Reserve policy. The Consumer Price Index (CPI), set for release on August 13, is a key indicator. If CPI figures fall below expectations, predicted at around 2.9% digital assets may benefit from renewed buying. The Producer Price Index (PPI), released the following day, will offer further insight. Together, these metrics could set the tone for potential Fed interest rate cuts in September.

Jackson Hole Symposium – August 21-23
The Jackson Hole Economic Symposium, hosted annually by the Federal Reserve Bank of Kansas City, will convene from August 21 to 23. Fed Chair Jerome Powell is expected to speak at the event, which is closely monitored for any policy hints. Should Powell take a dovish stance, the crypto market could experience a rally similar to movements seen during past Federal Open Market Committee (FOMC) updates.

Core PCE Data – August 29
The Core Personal Consumption Expenditures (PCE) index, the Fed’s preferred inflation gauge, will be released on August 29. A reading below 2.8% may indicate easing inflation and support arguments for monetary policy easing. However, if inflation remains elevated while GDP growth slows, it could delay anticipated rate cuts.

Market analysts, including those at Atlas, emphasize that crypto investors should track these events closely. The cumulative impact of inflation data, central bank commentary, and international trade policy will likely define the direction of the crypto market through the end of August.