September 2024 is likely to be quite an important month for the US economy and cryptocurrency market, with a few major events likely to bring in huge volatility. Investors should be ready to see market changes as such events take shape.

Herein, an explanation of the major macroeconomic developments to take place and the possible impact on the crypto market:

1. US Presidential Debate: 10th September 2024

The first U.S. The presidential debate between Donald Trump and Kamala Harris will be on September 10, 2024. Since it is focused on economic policies, this debate could be more influential on market sentiment.

Usually, the crypto markets become sensitive to political events-especially those that involve talking about economic policy, regulatory approaches, or financial stability. This debate might set the tone for markets heading into the next few weeks​.

2. Consumer Price Index Data Released: September 11, 2024

The August CPI data will be released by the U.S. Bureau of Labor Statistics on September 11, 2024. The Consumer Price Index is the measure of variation that calculates the price level of a basket of consumer goods and services purchased by households. It’s considered one of the most essential inflation measures.

If there is an uptick in inflation, this typically would usher in more investors into other classes of assets, such as cryptocurrencies, as a hedge against this trend. Large crypto markets have traditionally had strong reactions to the release of the Consumer Price Index.

In general, higher-than-expected inflation normally boosts bullish sentiment in the crypto market.

3. PPI Data Release: September 12, 2024

After the publication of the CPI, on September 12, 2024, U.S. PPI will also be released. The PPI measures the average changes in prices received by domestic producers for their output. This data serves as an indicator of future trends in inflation since producers may pass their increased costs on to consumers.

A strong increase in PPI may also indicate impending inflationary pressures, perhaps raising interest in cryptocurrencies as a hedge against inflation.

4. Federal Open Market Committee (FOMC) Meeting: September 18, 2024

Probably the most expected event of the month is the FOMC meeting on September 18, 2024. Here, the Federal Reserve is going to discuss monetary policy and probable interest rate changes.

Given the current economic situation, speculation goes that the Fed may consider interest rates lower in order to make the economy more liquid and, hence, push investment into more risky assets, including cryptocurrencies. However, in case of unexpected decisions, increased volatility will be seen within the crypto market.

Conclusion

September 2024 is packed with events that could trigger sharp volatility in the crypto market. From political debates to key economic data releases and meetings by central banks, each event has its own significance, which can impact investor sentiment and, ultimately, the direction of the market.

Crypto traders and investors should closely monitor the reports of such events, as this will bring more risks and opportunities to the highly volatile crypto world.

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