Several economic events in the United States could impact the crypto market this week, especially after Bitcoin (BTC) failed to surpass $65,000.

For the most part, all eyes will be on the US labor market, as maximum employment is on the Federal Reserve's mandate list.

ISM Manufacturing PMI for September

The September ISM Manufacturing PMI will be a crucial gauge of economic activity as the data reflects the health of the U.S. manufacturing sectors. The consensus expects the ISM manufacturing survey to register a reading of 47.3 in September, which would be a small change from the 47.2 recorded in August.

September data will be released on Tuesday (1). The latest survey by 10X Research anticipates anxiety leading up to the launch.

“While most attention has been on US jobs data, the ISM Manufacturing Index has triggered a 10% market correction in the first week of each of the past three months. Jobs data has played a crucial role in shaping market sentiment. Weak jobs numbers have fueled recession fears, raising expectations of Fed rate cuts, while more robust employment data has reassured investors that the economy was more resilient than the ISM Manufacturing Index suggested,” the researchers said here.

A higher-than-expected PMI, compared to the previous reading of 47.2, indicates a strong economy. If this happens, it could lead to an increase in investor confidence in traditional markets, potentially prompting them to allocate more capital to riskier assets like cryptocurrencies.

ISM Services PMI

Like the manufacturing data, the ISM Services PMI also measures economic activity and is a reflection of the health of the services sector. According to S&P Global’s preliminary PMI report for September, optimism about services output in the coming year has deteriorated sharply. Specifically, the survey’s future output index fell to its lowest level since October 2022.

This waning confidence came amid concerns about the outlook for the economy and demand in the face of uncertainty surrounding the presidential election. The Services PMI is expected to rise slightly to 51.7 in September from 51.5 in August. The data will be released on Thursday, October 3.

If the data is better than expected, it would suggest a strong economy, likely boosting investor confidence in traditional markets. Similarly, investors may be more open to allocating more capital to riskier assets like Bitcoin.

Nonfarm Payrolls and Unemployment Rate

Nonfarm Payrolls (NFP) data is a crucial indicator of labor market health, offering insights into job creation and employment levels. A strong NFP report reflecting robust job growth can stimulate consumption, drive economic expansion, and increase demand for digital assets.

On the other hand, a weaker-than-expected NFP report could spark concerns about economic stability, prompting investors to look to alternative assets like cryptocurrencies. The Unemployment Rate, another vital economic measure, reflects the strength of the labor market. A falling unemployment rate usually signals a stronger economy, boosting consumer confidence and potentially driving up crypto prices as individuals diversify their portfolios.

The consensus forecast for September calls for 145,000 new nonfarm payrolls, up from 142,000 in August, while the unemployment rate is expected to remain steady at 4.2%.

Capital Economics notes that while job growth remains positive, it has slowed compared to previous years, with hiring expectations also declining. Consumer confidence in job security is weakening, as indicated by the Conference Board survey, which warns of the unemployment rate potentially rising to 5% later this year.

With the labor market cooling, Capital Economics suggests that a persistent underperformance in payrolls data could prompt the Federal Reserve to consider an additional 50 basis points (bps) rate cut in November, following a similar cut in September.

Fed Chairman's Speech

Markets are also bracing for Federal Reserve Chairman Jerome Powell’s speech on Monday (30). Powell is expected to detail the Fed’s decision to cut its benchmark interest rate by half a percentage point and clarify the considerations that will shape an expected series of interest rate cuts through the rest of the year and into 2025.

As the crypto market braces for the volatility induced by these US economic events, Bitcoin’s price remains below $65,000. It is currently trading at $64,531, down 1.63% on the day.

The article Events that could impact the crypto market this week was first seen on BeInCrypto Brasil.