The cryptocurrency market continues to expect a strong rise in the fourth quarter. Looking at past data, it is seen that the fourth quarter generally produces positive results; for example, last year the market recorded a 56% increase during this period. A similar upward trend is expected this year. In addition, macroeconomic developments, especially in the US, may contribute to the revival of the sector.

Will the US Federal Reserve continue to cut interest rates?
The Federal Reserve recently cut interest rates by 50 basis points, and analysts expect that to continue. The jobs report due next week shows the U.S. unemployment rate is currently at 4.2% after rising from 4.1% in June to 4.3% in July; forecasts are for it to remain stable. Low interest rates are generally seen as a positive development for the cryptocurrency market, as investors tend to favor riskier assets during these times.

If the U.S. job market continues to weaken, the Fed may need to cut interest rates further. That could push the crypto market higher as more investors look to alternative assets. Falling energy prices in Europe are pushing some major economies toward deflation, and there is speculation that some countries could cut interest rates further. A weaker euro could drive European investors into cryptocurrencies.

Developments in the UK could also affect the cryptocurrency market. Following Labour leader Keir Starmer’s victory over Conservative leader Rishi Sunak in the 2024 general election, the UK is struggling to cope with high inflation and low consumer confidence. The government has yet to announce any major economic measures, with a new budget report expected next month.

On the other hand, China is facing a major financial crisis and the government has implemented a large stimulus package to overcome the crisis. As a result, the combination of interest rate cuts in the US, deflation risks in Europe, and China’s economic problems are creating a positive environment for the crypto market. These conditions could set the stage for another strong quarter of growth.