The crypto market is entering a crucial week, with growing anticipation for the upcoming US jobs data. This data, especially after weaker US PCE inflation figures last week, would help investors gauge market trends for the fourth quarter. Additionally, traders would also be keeping an eye on comments from Fed officials, amid growing expectations for a potential rally “through October.”
Crypto Market Eyes US Jobs Data This Week
The broader financial sector, not to mention the crypto market, is eagerly awaiting the upcoming US jobs data next week. In particular, the Department of Labor is expected to release data on non-farm payrolls, the unemployment rate and hourly wages for September in the United States on Friday, October 4.
This dataset would provide key insights into the current labor market trend. The labor market is notably one of the crucial areas that the US Federal Reserve takes into account when deciding its key rates.
According to Wall Street estimates, U.S. nonfarm payrolls data is expected to come in at 144,000, up from 142,000 in the previous month. On the other hand, the unemployment rate should remain unchanged at 4.2% for September.
Of note, last week’s U.S. PCE data showed inflation slowed to 2.2%, down from market expectations of 2.3%. This reinforced market optimism that the US Federal Reserve will maintain an accommodative stance at its upcoming meetings this year.
Comments from Fed officials will shape market sentiment
Numerous US Fed officials are expected to speak this week, which would be closely watched by investors in the crypto market. For example, the week will begin with remarks from Fed Governor Michelle Bowman and Fed Chair Jerome Powell on Monday, September 30.
Next, Fed Governor Lisa Cook is scheduled to speak on Tuesday. Additionally, Minneapolis Fed President and Atlanta Fed President Raphael Bostic will have a discussion on Thursday, October 4. Comments from central bank officials are likely to shape market sentiment, especially after the US Fed’s recent decision to cut rates by 50 basis points. during their last meeting.
Will the crypto market maintain its “so far” rally?
Recent declines in U.S. PCE inflation data have increased bets on another 50 basis point rate cut at the Fed’s November meeting, according to CME FedWatch. It has also sparked discussions about whether the crypto sector can maintain its “Uptober” momentum this year.
For context, historical data indicates that October generally tends to be a positive month for Bitcoin and top altcoins. Furthermore, the market also shows positive dynamics in the last quarter of the year.
Meanwhile, this year, the upcoming US elections in November are also expected to boost market sentiment. Given all of this, several market experts are optimistic about an “October” as well as a fourth-quarter rally for the broader market in 2024.
Rupam Roy
Rupam is a seasoned professional with three years of experience in the financial market, where he developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. Its role involves publishing articles, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting relevant economic information. Rupam’s career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with diverse audiences.
Disclaimer: Content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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