Cryptocurrency markets gave back some of last week's gains in early Asian trade on Monday, with analysts noting that gains in both Bitcoin and Ethereum have weakened. Investors are paying attention to an upcoming speech by U.S. Federal Reserve Chairman Jerome Powell and U.S. labor market data to be released on Friday, both of which may have an impact on the market.
Bitcoin (BTC) price fell 2.09% in the past 24 hours to around $64,403, according to The Block data. On Friday, Bitcoin rose to nearly $66,500, its highest level since late July, following weaker-than-expected personal consumption expenditures (PCE) data. China also announced a series of strong stimulus measures last week to revive its economy.
Rachael Lucas, an analyst at Australian cryptocurrency exchange BTC Markets, said: "Bitcoin is showing overbought on the daily chart and its price has retreated after hitting a high of $66,498 on Friday. Momentum has since faded."
Ethereum is also struggling to regain momentum, Lucas said, having lost momentum after breaking above the 50-day simple moving average (SMA) last week. Ethereum (ETH) price fell 1.69% in the past 24 hours to $2,626, according to The Block data.
Bauer Lecture and NFP
Investors are paying attention to two key macroeconomic events this week - U.S. Federal Reserve Chairman Jerome Powell's speech at the National Association of Business Economics (NABE) at 1:55 a.m. Taiwan time on Tuesday, and Friday's U.S. non-farm payrolls report. Employment data (NFP). Ball is expected to discuss the economic outlook and possibly provide insights on the Fed's monetary policy.
"Boer's comments, especially on inflation and interest rates, typically move markets, and cryptocurrencies are no exception." Lucas said: "Any hawkish comments could further fuel risk aversion, leading to today's decline."
However, Augustine Fan, head of insights department at SOFA.org, said that Ball is unlikely to make any remarks that will affect the market. "Investors may expect him to make more similar remarks based on the content of the last FOMC, especially since he Since the last dovish Q&A, recent inflation data has been in his favour."
The U.S. Labor Department will release its monthly nonfarm payrolls report on Friday, which provides a snapshot of the U.S. job market and overall economic strength. Although the data in August showed that the U.S. labor market was weak, Lucas of BTC Markets said that the market expected the data in September to improve. “Stronger-than-expected employment data may consolidate the Fed’s current interest rate orientation and have a negative impact on risk assets.” It is potentially bullish, including Bitcoin and Ethereum.”
As far as cryptocurrency prices are concerned, Fan from SOFA.org said in an interview with The Block that the market is likely to remain bullish in the short term, “with cryptocurrencies maintaining high correlations with macro assets, especially relative to the SPX (S&P 500 Index), we believe the friendly macro backdrop will continue to provide strong assistance to cryptocurrency prices in the fourth quarter." Fan added:
"Furthermore, with Kamala Harris talking up her 'support' for cryptocurrencies in her campaign rhetoric, we remain bullish on the near-term price action, with investors shifting to 'buy the dip' mode, targeting Sexual put-selling strategies may be popular.”
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