Bitcoin held steady last week while altcoins tumbled, as the crypto market entered a holding pattern ahead of key macro and corporate catalysts.
This week, all eyes are on the Federal Reserve’s interest rate decision, a wave of significant tech earnings from companies like Microsoft and Amazon, and ongoing ETF inflows for Bitcoin (BTC) and Ethereum (ETH). With inflation rising and Trump’s proposed tariffs threatening fresh economic tension, traders are bracing for a volatile stretch that could shape the next phase of the crypto bull run.
- Bitcoin and altcoins will react to the Federal Reserve rate decision on Wednesday.
- Top American companies like Microsoft, Amazon, and Meta will publish their earnings.
- Traders will watch the ongoing Bitcoin and Ethereum ETF inflows.
Federal Reserve and key economic data
At last check Sunday, Bitcoin remained in a tight range between $116,000 and $119,000, while Ethereum held slightly below the key resistance at $4,000. This article examines some of the key catalysts that will impact Bitcoin and altcoins this week.
Bitcoin, altcoins, and other assets are expected to react to Wednesday’s interest rate decision. Economists expect the Fed to resist pressure from President Donald Trump and leave interest rates unchanged between 4.25% and 4.50%.
The Fed believes that the economy is doing well, but is concerned about the impact of Trump’s tariffs on inflation. Their fears have been justified as inflation has ticked up in the past few months, with the headline consumer price index rising from 2.4% in June to 2.7% in July.
In line with this, Bitcoin and altcoins will react to the upcoming macroeconomic data that will impact the next Fed decision. The most notable of these data will be Tuesday’s consumer confidence, Wednesday’s GDP, and Thursday’s personal consumption index.
The U.S. will then publish the non-farm payroll report on Friday. This is a key report because it forms part of the Fed’s dual mandate.
Magnificent Seven earnings
The other catalyst for Bitcoin and altcoins will be the ongoing second-quarter earnings season. The biggest US banks like JPMorgan and Bank of America have already published their earnings.
The focus now shifts to the upcoming numbers from the top Magnificent 7. The group includes Tesla (TSLA), Apple (AAPL) Microsoft (MSFT) Google’s parent company Alphabet (GOOGL), Amazon (AMZN), Nvidia (NVDA) and Facebook parent company Meta Platforms (META).
Over 50% of all companies in the S&P 500 Index will publish their earnings this month. The main theme in this earnings season is that earnings growth has been more resilient than expected, which explains why the S&P 500 Index has reached a record high.
Historically, earnings from top companies like Microsoft and Apple have a significant impact on the S&P 500. At the same time, Bitcoin has a close correlation with the blue-chip index.
Bitcoin and Ethereum ETF inflows
The other catalyst for Bitcoin and altcoins is the ongoing demand trajectory in the US. Data shows that spot Bitcoin and Ethereum ETFs have continued to accumulate inflows this year.
Spot BTC ETFs added $72 million in inflows last week, the smallest weekly gain since June. Ethereum ETFs, on the other hand, added over $5.1 billion in assets.
At the same time, cryptocurrencies will react to the ongoing corporate accumulation by companies like Strategy, MetaPlanet, and SharpLink.
Trump’s trade war
Further, the crypto market will react to the upcoming Trump’s deadline of tariffs on key countries. On Sunday, the U.S. and EU struck a last-minute deal to impose 15% tariffs on most European exports, including cars, narrowly avoiding a trade war. Announced by Trump and EU leaders at his Turnberry golf club, the pact takes effect Aug. 1 and was praised as a “sustainable” solution by European officials.
It remains to be seen whether other countries, including South Korea, Mexico, Brazil, and Canada, can reach an agreement with the Trump administration before the Aug. 1 deadline.
A prolonged trade war will likely have a negative impact on Bitcoin, altcoins, and other assets.