Coinspeaker Key Macro Developments to Impact Bitcoin and Altcoins This Week
Bitcoin BTC $63 570 24h volatility: -3.0% Market cap: $1.26 T Vol. 24h: $24.99 B and altcoins have come under some selling pressure today in the early trading hours in Asia, as the market braces for volatility ahead of the speech by US Federal Reserve Chair Jerome Powell, along with the release of US jobs data expected on Friday.
The Bitcoin price is down more than 2% and is currently trading at $64,217 levels with a market cap of $1.269 trillion. Last Friday, the BTC price peaked at $66,500, reaching its highest level since July. The major thrust of the BTC price rally was lower-than-expected personal consumption expenditure (PCE) data.
On the other hand, Chinaâs central bank PBoC also announced a major liquidity boost infusing $140 billion into the economy, in order to pump up its weakening economy. Reports suggest that Chinese investors are also seeking a safe haven in Bitcoin amid the fragile economic conditions. Speaking on the development, Rachael Lucas, crypto analyst at BTC Markets said:
âBitcoin appears overbought on the daily chart, with its price rolling over after reaching a high of $66,498 on Friday. Since [last week], momentum has faded.â
Along with Bitcoin, altcoins are also facing steep correction with Ethereum, BNB Coin, and others correcting 2-4%. On the other hand, meme coins like Dogecoin DOGE $0.12 24h volatility: -5.5% Market cap: $17.49 B Vol. 24h: $1.02 B , Shiba Inu SHIB $0.0000 24h volatility: -7.8% Market cap: $10.76 B Vol. 24h: $853.79 M , Pepe Coin PEPE $0.0000 24h volatility: -5.0% Market cap: $4.50 B Vol. 24h: $2.11 B , who enjoyed a strong run-up in the last week, have corrected between 5-10% today.
After a strong run-up this month, markets might see some period of consolidation before the Uptober rally begins.
Two Major Macro Events â Powell Speech and NFP
Crypto investors will be watching two major macro developments this week. Later today, Fed chair Powellâs speech at the National Association for Business Economics as well as the upcoming US non-farm payrolls report on Friday.
Later today, the Fed Chair will address the economic outlook along with offering some insights into the Fed monetary policy. Lucas stated: âPowellâs comments, particularly on inflation and interest rates, often move markets, and crypto is no exception. Any hawkish tone could further fuel risk-off sentiment, contributing to todayâs declines.â
However, some market analysts believe that Powell wonât announce anything that is market-moving. SOFA.org Head of Insights Augustine Fan said: âInvestors are likely expecting him to speak more of the same as per the last FOMC, especially with the recent inflation data moving in his favor since his last dovish Q&A.â
The US Labor Department is set to release its monthly non-farm payrolls report this Friday, providing insight into the nationâs job market and economic health. Despite Augustâs data reflecting a softening labor market, BTC Marketsâ Lucas noted that the markets anticipate improvement in the September figures. âStronger-than-expected employment data could bolster the Fedâs current stance on interest rates, potentially benefiting risk-on assets like Bitcoin and Ethereum,â Lucas stated.
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Key Macro Developments to Impact Bitcoin and Altcoins This Week
