The cryptocurrency market is expected to perform well in Q4 due to historical trends and recent interest rate cuts.The market will be influenced by macroeconomic factors such as employment data, inflation and geopolitical events.
The weak euro and economic uncertainty in key countries may play in favor of the #cryptocurrency market.
The cryptocurrency market enters Q4 with high expectations. Historically, Q4 has been a strong period for the market, with a return of 56.6% in Q4 2023. However, for digital currencies to perform well, they need not only momentum, but also a favorable economic environment.
Let's take a look at the major economic factors that could affect the cryptocurrency market next week.
the US Federal Reserve recently cut interest rates by 50 basis points.
Next week, important employment data will be released. The U. S. unemployment rate currently stands at 4.2%, up from 4.1% in June and 4.3% in July. The unemployment rate is predicted to remain unchanged again.
A drop in interest rates is usually a good sign for the cryptocurrency market. This is because it encourages investors to take risks by choosing assets such as #cryptocurrencies over safer options such as bonds.
If the U. S. labor market continues to weaken, the Fed may be forced to cut interest rates further. If this happens, the cryptocurrency market could rise as more investors look for alternative assets.
Falling energy prices have led to deflation in some of Europe's largest economies. There are rumors that some European countries are considering further interest rate cuts, which could further weaken the euro.
the weakening of the euro could push European investors into cryptocurrencies.
the UK is struggling with high inflation and low consumer confidence after Labour leader Keir Starmer defeated Conservative leader Rishi Snrump in the 2024 general election. Despite these challenges, the government has yet to announce any significant measures to tackle the economic crisis. The next budget report is scheduled for next month.
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