FOMC Minutes, Coinbase-Circle USDC Renewal in Focus This Week

Forecast Trend Report by Period

The crypto market this week will be driven by the release of minutes from the Federal Open Market Committee, the renewal of Coinbase and Circle’s USDC partnership agreement, and new European Union restrictions on transactions with designated crypto platforms.

CoinDesk reported on August 17 that minutes from the Fed’s July 28-29 FOMC meeting will be released on August 19. Investors are watching for clues on how far the Federal Reserve is weighing additional interest-rate increases.

In the crypto industry, Coinbase and Circle’s USDC partnership agreement enters its first three-year renewal period on August 18. The contract governs how the two companies share revenue generated by the USDC business. From August 23, businesses in the EU will be barred from transacting with 14 designated crypto-asset service platforms.

A string of economic data releases is also due this week. The US will publish July industrial production on August 18, weekly initial jobless claims on August 20, and the preliminary August S&P Global composite purchasing managers’ index on August 21. Inflation data from the UK, the euro zone and Japan are also scheduled.

On the token-supply side, a series of large unlocks is coming. Official Trump (TRUMP) is scheduled to release about $40 million worth of tokens on August 18, equal to 4.1% of circulating supply. On August 20, LayerZero (ZRO) will unlock $24.8 million and Kaito (KAITO) $11.7 million. On August 21, Avalanche (AVAX) is due to unlock $23.1 million and Morpho (MORPHO) $22.7 million.

Geopolitical tensions in the Middle East and movements in crude oil prices are also in focus. If developments involving the US and Iran move oil prices, they could also affect the inflation outlook and interest-rate expectations.