As October approaches, the cryptocurrency market faces a crucial economic scenario that could define its next moves. According to Odaily, macroeconomic researcher Adam from Greeks.live, he highlights that between September 30 and October 6, several key economic events will influence both traditional markets and the crypto market. These factors are crucial for investors looking to maximize their opportunities and minimize risks in an environment of increasing volatility.
What is happening in the markets?
- US Unemployment Rate and Nonfarm Payrolls: US employment data, such as the unemployment rate and nonfarm payrolls, due out on Friday, are critical to this week's macroeconomic analysis. While the A-share market is experiencing a favorable momentum, the US stock market is showing less impressive performance. Still, the cryptocurrency market remains closely linked to the US stock market, meaning any movement in economic data could trigger a significant response in cryptocurrency prices.
- The role of cryptocurrencies and USDT: Adam suggests that some investors are moving their funds out of cryptocurrencies to invest in A-shares, which has driven down the price of USDT. However, this relationship also presents an opportunity for investors who understand how to take advantage of market fluctuations in this uncertain environment.
Key Events of the Week (September 30 - October 6)
1. President Biden's speech (September 30, 23:00 UTC+8): The US President's remarks could impact economic policies, which would impact the crypto market.
2. Federal Reserve Chairman Jerome Powell's speech (October 1, 02:00 UTC+8): Interest rate expectations and the Fed's approach to inflation will also influence crypto market sentiment.
3. US ISM Manufacturing PMI (Oct 1, 22:00 UTC+8): Data on the manufacturing sector will provide an indication of US economic strength and impact growth expectations.
4. ADP Employment Change (October 2, 20:15 UTC+8) and Initial Jobless Claims (October 3, 20:30 UTC+8): These employment indicators will provide additional clues about the health of the economy and could impact the cryptocurrency market performance.
5. Unemployment and Nonfarm Payrolls Data (October 4, 20:30 UTC+8): This data has a history of generating significant movements in both traditional and crypto markets.
October Outlook: Opportunity or Risk?
Historically, October has been a positive month for the cryptocurrency market, known as “Uptober,” where prices typically rally. Despite the current bearish pressure and low implied volatility, many analysts maintain an optimistic outlook for the rest of the month. The close of the quarterly settlement, which has caused significant volatility, could open the door to a recovery phase in the crypto market.
How should investors prepare?
This economic outlook highlights the importance of closely monitoring macroeconomic data and key events that will unfold this week. While the market is still “bottoming out,” the recovery of market confidence suggests that we could be on the verge of a positive turnaround. Investors should remain vigilant about price fluctuations and be prepared to react quickly to news.
