Hormuz & Inflation Catalysts to Shape Crypto Markets This Week

Crypto markets will be watching key inflation data this week as US nonfarm payrolls unexpectedly fell by 23,000 in July.

The drop and subsequent revisions down of May and June employment numbers have cut the implied probability of a Federal Reserve hike in September to about 44%.

This puts Wednesday's CPI release at the center of the rate debate, with economists polled by Reuters expecting headline inflation to ease to 3.4% year over year from 3.5% in June, while core CPI is forecast at 2.5%.

A downside surprise would strengthen the case for leaving rates unchanged after July's weak employment report, potentially creating a better backdrop for Bitcoin and other risk assets.