On a low note, the crypto market begins the final week of September with a cumulative market value decline of 2%. Bitcoin trades around $64,500, reflecting a subdued performance as traders anticipate critical economic data releases and a speech from U.S. Federal Reserve Chair Jerome Powell.
Market performance on a downward trend
On Monday, the global crypto market cap dropped by 2%, bringing the total to approximately $2.3 trillion. Bitcoin’s performance has been relatively stable, maintaining its position near the $64,500 mark. This downward trend coincides with the anticipation of significant U.S. economic data and Powell’s impending remarks, which are expected to address the central bank’s policy outlook following a 0.50% rate reduction.
Analysts focus on Powell’s speech, as the Federal Reserve’s missteps could severely affect the economy. A recent survey by Reuters highlighted that 39% of economists consider inappropriate use of interest rate adjustments against inflation the top economic risk.
Anticipation of economic reports
The crypto market’s lackluster performance comes as traders await critical reports, including the S&P Global U.S. Manufacturing Purchasing Managers’ Index (PMI) and the September ISM Manufacturing Index. The S&P Global PMI serves as a monthly indicator of manufacturing performance, while the ISM Manufacturing Index reflects expansion or contraction in the sector. Additionally, job data this week will be a critical economic indicator that will influence the Federal Reserve’s monetary policy decisions in November.
Key Events This Week:1. Fed Chair Powell Speaks – Monday2. September ISM Manufacturing data – Tuesday3. JOLTs Jobs data – Tuesday4. ADP Nonfarm Employment data – Wednesday5. October OPEC Meeting – Wednesday6. Initial Jobless Claims – Thursday7. September Jobs Report…
— The Kobeissi Letter (@KobeissiLetter) September 29, 2024
Recent data indicated that consumer spending in the U.S. rose moderately in August. However, analysts predict further interest rate cuts could occur in the fourth quarter of this year. S&P Global Ratings has forecasted the real GDP growth for the U.S. to be 2.7% in 2024 while projecting a lower growth rate of 1.8% for 2025. The company also sees a 25% chance of a U.S. recession within the following year.
Potential for a positive year-end for Bitcoin
Despite the challenges in the economic landscape and the current state of the crypto market, Bitcoin may finish the year positively. September is closing with monthly gains of approximately 8%. Analysis from Ali Martinez reveals that only four September since 2013 ended with gains. A positive September has often indicated a bullish fourth quarter, leading to increased monthly returns. This suggests that despite ongoing uncertainties related to economic indicators and election outcomes, a solid finish to 2024 remains possible for Bitcoin and the broader crypto market.
The current market dynamics highlight the interplay between economic data releases and cryptocurrency performance. As traders monitor the developments closely, the outlook for Bitcoin and the crypto market may be favorable as the year progresses.
The post Crypto Market Hits Monday Blues Ahead of September Economic Data first appeared on Coinfea.
