The cryptocurrency market is eagerly awaiting crucial events next week, including the US employment data. The employment figures would be one of the most closely watched data next week as it would further strengthen bets on upcoming Fed rate cuts. Furthermore, it would also impact the performance of Bitcoin and altcoins in the coming days.
Additionally, several Fed officials are expected to speak next week, which would also provide insight into the U.S. central bank’s future stance on its upcoming policy rate plans.
Cryptocurrency Market Awaits US Jobs Data
US employment data is due on Friday, September 6 and will be closely watched by investors. It will set the stage for the US Federal Reserve’s future stance on its policy rate plans.
The number of unemployed in the United States is expected to increase to 162,000 in August, from 114,000 the previous month, according to market estimates. In contrast, the monthly unemployment rate is expected to come in at 4.2%, down from 4.3% in July.
Employment data plays a crucial role in understanding the economic situation of the country. Typically, slowdowns in nonfarm payrolls data along with rising unemployment rates tend to boost cryptocurrency market sentiment.
Meanwhile, the expected mixed data is unlikely to impact the Fed’s upcoming rate-cutting plans in September. However, if the data reveals unexpected results, it could weigh on the central bank’s future stance on its rate-cutting plans, which could impact overall market sentiment.
Remarks by US Fed officials are at the heart of the debate
In addition to key economic data, some Fed officials are expected to speak after the jobs report is released next week. For example, New York Fed President John Williams is expected to speak just after the U.S. jobs data is released on September 6.
Fed Governor Christopher Waller is also expected to speak on the same date. The cryptocurrency market, as well as the broader financial sector, will be watching these remarks closely for potential clues about the central bank’s upcoming stance.
Fed Chairman Jerome Powell recently hinted at a possible rate cut in September.
Will Bitcoin and Altcoins Rebound?
The past week has been very volatile for the cryptocurrency market, with Bitcoin and other leading altcoins seeing significant declines. Furthermore, historical data indicates that Bitcoin price could drop as low as $50,000 if the bearish trend continues in September.
The key events mentioned above will play a crucial role in the central bank’s upcoming decision. However, recent US PCE inflation data showed a slowdown in inflation, which has sparked optimism in the market.
According to the CME’s FedWatch tool, the probability of a 25 bps rate cut by the Federal Reserve in September is 70%. The remaining 30% are betting on a 50 bps rate cut at the central bank’s next meeting.
Rupam Roy
Rupam, a seasoned professional with 3 years of experience in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a Sub-Editor at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions include breaking news reporting, in-depth research on AI-related developments, real-time cryptocurrency market updates, and presenting insightful economic insights. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.
Disclaimer: The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication does not assume any responsibility for your personal financial losses.
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