The cryptocurrency market may enter a critical period with the US employment data to be announced next week. This data, which comes on the heels of softer US PCE inflation numbers released last week, will help investors evaluate fourth-quarter market trends.
Focus on US Employment Data
Like global markets, the cryptocurrency market is eagerly awaiting the US employment data to be released next week. In particular, the US Department of Labor will announce non-farm employment, unemployment rate and hourly wage data for September on Friday, October 4.
Inflation Data Supported the Market
Last week’s US PCE data showed inflation remained below market expectations, falling to 2.2 percent. This increased the possibility of the US Federal Reserve (Fed) pursuing a softer monetary policy in its upcoming meetings and supported market optimism.
Statements of Fed Officials Will Affect the Market
This weekFed managers Michelle Bowman and Fed President Jerome Powell will give speeches on Monday, September 30. Fed bank manager Lisa Cook will make statements on Tuesday, and Minneapolis and Atlanta Fed presidents Raphael Bostic will make statements on Thursday. Statements from central bank officials may shape market sentiment.
“Uptober” Rally Expectation in the Crypto Market
Last week’s positive US PCE inflation data increased the possibility of the Fed cutting interest rates by 50 basis points at its November meeting. This has sparked debate about whether the cryptocurrency market will be able to maintain its “Uptober” momentum this year.
According to historical data, October is usually the month of Bitcoin $65,693 and it tends to be a positive month for leading altcoins. Additionally, an overall positive momentum is observed in the markets in the last quarter of the year. The upcoming November US elections this year are also expected to strengthen market sentiment. Considering all these factors, many market analysts are optimistic about a fourth-quarter rally for “Uptober” and the overall market in 2024.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
