Critical Week Ahead for Bitcoin and Crypto: Manufacturing Data, FOMC Meeting Minutes, and ETF Buzz to Influence Prices

• Key events, including the ISM Manufacturing data, Federal Open Market Committee (FOMC) Meeting Minutes, and the June US Jobs Report, are slated to significantly influence Bitcoin and crypto prices this week.
• Developments around the BlackRock spot ETF application are expected to notably impact the cryptocurrency market.

As we launch into a fresh week following a bullish quarter for Bitcoin and cryptocurrencies, it’s imperative to discern the macroeconomic events that could noticeably sway Bitcoin and other cryptocurrency prices.

The Big Picture for Bitcoin and Cryptocurrencies This Week

Starting the week, market players eagerly await the ISM Manufacturing data, slated for Monday at 10:00 am EST. This data reflects the U.S. manufacturing sector’s health—a vital contributor to the broader economy. A positive output implies a thriving manufacturing sector, leading to escalated business investments and consumer spending. As a consequence, both the traditional finance and crypto sectors could gain momentum.

On Tuesday, July 4, U.S. markets remain closed for Independence Day. It’s anticipated to be a relatively calm day for both traditional and crypto markets with no significant events scheduled.

All eyes will pivot to Wednesday, July 5, at 2:00 pm EST for the Federal Open Market Committee (FOMC) Meeting Minutes release. These minutes reveal intricate details of the discussions and decisions from the last FOMC meeting. Investors scrutinize the minutes for clues on the Federal Reserve’s monetary policy, interest rate, and inflation stance. Any implication of potential policy shifts can profoundly impact traditional markets and cryptocurrencies. A hawkish tone, signaling monetary policy tightening, could trigger a sell-off for stocks, Bitcoin, and crypto.

Come Thursday, July 6, several crucial reports related to the labor market and economic activity will be on the docket. The Services Purchasing Managers’ Index (PMI) data and the Jobless Claims report will offer insight into the services sector’s performance and the labor market’s health, respectively. A robust labor market generally coincides with increased consumer spending and economic growth, which can bolster both traditional and crypto markets.

However, the relationship between the labor market and financial markets isn’t straightforward. The Fed believes a strong job market, characterized by increased hiring and wages, typically stokes higher inflation. Therefore, it desires higher unemployment rates. If the labor market remains strong, the odds for another rate hike increase.

Lastly, an element expected to play a significant role in the crypto market this week is the buzz around the BlackRock spot ETF. The world’s largest asset manager, BlackRock, is yet to refile or amend its ETF application after the US SEC deemed it “inadequate” last week. Any updates on this front could have a substantial impact on the market sentiment and Bitcoin price. As of the press time, Bitcoin was trading sideways at $30,763, with prices fluctuating between $29,800 and $31,000.