The crypto market could see renewed volatility during the week of Aug. 11-16 as investors prepare for U.S. inflation data and several major token unlocks. Bitcoin started the week near the $65,000 level, with attention shifting to July’s consumer inflation report and its potential impact on Federal Reserve policy.
Bitcoin was trading at around $65,100 on Aug. 10, while Ethereum hovered near $1,625. The reduced likelihood of another interest-rate increase following weak U.S. employment data supported a modest recovery across crypto assets.
U.S. inflation could set the direction for Bitcoin
The week’s most important data release is scheduled for Wednesday, Aug. 12, at 8:30 a.m. ET. Annual U.S. consumer inflation is expected to ease from 3.5% to 3.4%, while the monthly CPI reading is forecast at 0.1%. The U.S. Bureau of Labor Statistics has confirmed that July’s figures will be published on that date.
A lower-than-expected reading could strengthen the view that the Fed will keep interest rates unchanged. Such an outcome may weigh on the dollar and Treasury yields, creating a more supportive environment for risk assets, including Bitcoin.
Producer inflation and weekly jobless claims will follow on Thursday, Aug. 13. U.S. retail sales and the University of Michigan’s consumer sentiment index are scheduled for Friday. The preliminary August sentiment reading will offer further insight into households’ views on the economy and inflation after the index reached 55.2 in July.
The Reserve Bank of Australia will also announce its interest-rate decision on Tuesday, Aug. 11. Developments in the Middle East and movements in oil prices remain another major risk, particularly because of their potential effect on inflation expectations.
WLFI and altcoin unlocks enter the spotlight
One of the largest events on the crypto calendar is scheduled for Aug. 12. Approximately 6.91 billion WLFI tokens held by AI Financial Corporation are expected to become fully transferable, subject to the required conditions. At current prices, the holdings are worth around $360 million. The company disclosed the timetable in an SEC filing submitted in June.
Approximately 9.17 billion PUMP and 11.31 million APT tokens are also scheduled to unlock on the same day. Another 1.32 million CONX tokens will enter circulation on Aug. 15.
The week’s largest unlock relative to circulating supply will take place on Aug. 16. Around 120 million YZY tokens, currently valued at approximately $35 million, are expected to be released. Another 92.65 million ARB tokens will enter circulation on the same day. Their dollar values may change depending on price movements.
Investors will therefore be watching trading volumes, exchange inflows and large-wallet activity around the unlocks. Short-term volatility could increase as the additional supply reaches the market.
Finally, the second-quarter Form 13F filing deadline falls on Aug. 14. The disclosures will show how major U.S. institutional investment managers changed their Bitcoin and Ethereum ETF positions during the quarter. According to the SEC calendar, Friday is the final day for the filings.
