Bitcoin and Ethereum prices retreat as the market awaits important economic indicators
This week, global investors will pay close attention to the speech by U.S. Federal Reserve (Fed) Chairman Jerome Powell and the upcoming non-farm payrolls data. These key general economic events can have a significant impact on the cryptocurrency market.
Picture source: "Crypto City" mapping major events in the currency circle in October
Bitcoin has fallen 2.09% in the past 24 hours to a price of about $64,403, according to The Block. Previously, Bitcoin hit a high of nearly $66,500 on Friday, its highest level since late July, mainly benefiting from the release of lower-than-expected personal consumption expenditures (PCE) data and China's announcement of a series of economic stimulus measure.
However, crypto analyst Rachael Lucas said: "Bitcoin appears overbought on the daily chart, with prices starting to retreat after reaching a high of $66,498 on Friday. Momentum has weakened somewhat since last week."
Likewise, Ethereum is struggling to regain its upward momentum. Ethereum has fallen 1.69% in the past 24 hours, quoting around $2,626, according to The Block. Lucas noted that Ethereum lost momentum after breaking above its 50-day simple moving average last week.
Ball’s speech and non-farm payrolls data become market focus
Investors will focus on two major general economic events this week: Ball's speech at the National Association for Business Economics, and the U.S. Labor Department's non-farm payrolls data due to be released on Friday.
Source: NABE Ball spoke at the National Association for Business Economics
In his speech, U.S. Federal Reserve Chairman Jerome Powell expressed his views on economic and interest rate policies, emphasizing interest rate changes and inflation targets. Ball noted that while further rate cuts are possible this year, this will depend on future economic data, especially changes in inflation data. Ball expressed confidence in the strong performance of the U.S. economy and believed that the current stable labor market would help achieve the 2% inflation goal. These signals have triggered optimism in the market for risky assets such as cryptocurrencies.
As for non-farm payrolls data, BTC Markets’ Lucas noted that the market is expecting September’s employment data to improve. She said:
"Stronger-than-expected employment data may strengthen the Fed's current interest rate policy, which may be beneficial to risk assets including Bitcoin and Ethereum."
At the same time, Atlanta Fed President Raphael Bostic also added that if job growth falls significantly below 100,000, the Fed will need to conduct a more in-depth assessment of economic conditions. He expressed optimism about the stability of the labor market but was also open to considering a 50 basis point rate cut as a precautionary measure in the event of weak economic data.
Cryptocurrency market prospects and investment strategies
When it comes to cryptocurrency prices, Augustine Fan, director of research at SOFA.org, believes the market is likely to remain bullish in the short term. He said: “As the correlation between cryptocurrencies and general economic assets remains high, especially with the S&P 500 Index (SPX), we believe that the friendly general economic background will form a strong support for cryptocurrency prices in the fourth quarter. In addition, , with the Kamala Harris camp expressing support for cryptocurrencies in the election, we remain optimistic about price action in the short term, and investors may adopt a strategy of selling put options and instead enter "buy the dip" 』 pattern.
Market analysts generally believe that this week’s economic events may bring new impetus to the cryptocurrency market. As Ball's remarks gave the market a wave of confidence, investors will also pay close attention to the next non-farm payrolls data to determine future investment directions. In the context of global economic uncertainty, the cryptocurrency market may fluctuate due to the release of these key data. Investors need to remain vigilant and pay close attention to market dynamics.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
