The cryptocurrency market's gains paused today (30th) and failed to continue last week's rebound pattern. Bitcoin fell below US$65,000 and Ethereum nearly fell below the US$2,600 mark. Investors this week will be watching Federal Reserve Chairman Jerome Powell's speech and September employment data to assess whether the Fed will continue to cut interest rates before the end of the year. Analysts noted that any "hawkish" language could reverse market trends, exacerbating risk aversion and triggering further losses.
Benefiting from the U.S. personal consumption expenditures (PCE) price index in August being lower than expected and China announcing a series of incentive measures to boost the economy, Bitcoin once rose to about $66,500 on Friday, hitting its highest level since the end of July. However, it gave up some of its gains over the weekend and fell to $64,577 at the time of writing.
Rachael Lucas, cryptocurrency analyst at BTC Markets, said:
Bitcoin is showing signs of being “overbought” on the daily chart, with the price correcting after reaching a high of $66,498 on Friday. Since then, upside momentum has weakened significantly.
Rachael Lucas noted that Ethereum is facing similar challenges, with momentum fading after breaking above its 50-day simple moving average.
Investors will welcome Ball's speech and September employment report this week, speculating on the prospect of interest rate cuts before the end of this year. Ball is scheduled to give a speech at 1:55 a.m. on October 1, Taiwan time, focusing on the US economic outlook. It was his first public speech since the Fed launched its first interest rate cut in more than four years.
Rachael Lucas said in this regard, "Bower's remarks, especially those on inflation and interest rates, often affect the market, and cryptocurrency is no exception." "Any hawkish tone may intensify risk aversion, further boosting today's decline".
However, Augustine Fan, director of insights at SOFA.org, believes that Ball is unlikely to make any remarks that affect the market:
Investors may expect him to repeat what he said at the last FOMC meeting, especially against the backdrop of inflation data favoring his dovish stance.
Powell has previously hinted that he intends to continue cutting interest rates in the coming months, but the exact decision will depend on economic data, especially the labor market, which also makes the September employment report released on October 4 more interesting. Rachael Lucas mentioned:
Stronger-than-expected employment data may strengthen the Fed's current interest rate policy, which will benefit risk assets such as Bitcoin and Ethereum.
As far as cryptocurrency prices are concerned, Augustine Fan speculates that the market may remain bullish in the short term:
Because cryptocurrencies have high correlations with macro assets, particularly the S&P 500, we believe a friendly macro backdrop will be a strong driver for crypto prices in Q4.
In addition, as the Kamala Harris camp expressed "support" for cryptocurrencies during the election campaign, we remain optimistic about the recent price trend of the currency market. As investors gradually turn to "buying the dip" mode, it is expected to sell "put options" (Put Options)" targeted strategies will be welcomed.
〈Bitcoin drops below $65,000! Analyst: Upward momentum weakens, and Ball’s speech will be key> This article was first published on "Blocker".
