Fed Minutes in Focus

CryptoPotato reported at the end of July that the US Fed maintained the interest rates unchanged for a fifth consecutive meeting, even though this one was the most uncertain since the COVID-19 outbreak in early 2020. The decision, though, exposed a growing divide among policymakers, as three officials favored a rate hike.

Consequently, investors are now expecting the minutes for additional details about the central bank’s concerns over inflation and whether more policymakers will join the call for higher rates in the coming months. Risk assets like cryptocurrencies tend to be affected the most by the Fed’s plans as expectations for tighter monetary policy typically put pressure on speculative investments.

The latest economic data cast another shadow on the broader picture. US retail sales unexpectedly declined by 0.6% in July, which was the first drop in nine months. Recent unemployment and inflation readings reduced the expectations for a September rate hike.

More interesting data comes on Thursday with the release of the weekly initial jobless claims, which could provide further insight into the US labor market. The August Philadelphia Fed Manufacturing Index will also be released on that day, which can offer an early indication of changes in economic activity.

The rest of the macro releases in the US are unlikely to have any impact on crypto. They include the August S&P Global Manufacturing and Services PIM readings.

Price Updates

Crypto prices stayed quiet over the weekend, but most assets have marked minor increases on Monday morning. Bitcoin is up to $63,400, while ETH has challenged the $1,900 level again. XRP continues to fight for the psychological $1.00 support.

HYPE and RAIN have surged the most from the larger caps, gaining 3.5% and 2.5%, respectively. WLFI is in the green again after the recent bank charter license received by the project behind it.