The crypto market turned bearish following the release of U.S. economic data last week. Bitcoin has tumbled nearly 3 %, and Ethereum has dropped almost 2% over the past 24 hours.
Investors now await a speech from Federal Reserve Chair Jerome Powell as it could determine the next price direction.
The upcoming non-farm payroll report could also impact crypto market sentiment.
Bitcoin and Ether Prices Decline
Bitcoin lost momentum after a strong rally last week, dropping by 2.93% to $63,850. According to CoinMarketCap data, Ether followed the trend, dipping by 1.09% to $2,630.
This pullback comes after Bitcoin hit $66,500, its highest price since July, thanks to Friday’s lower-than-expected U.S. economic data.
Crypto analyst Rachael Lucas from BTC Markets noted, “Bitcoin appears overbought on the daily chart.” She explained that Bitcoin’s price began to fall after its peak last Friday.
Ethereum has also struggled since breaking its 50-day simple moving average. Its price is now $2,624, down from last week’s gains. Meanwhile, ETH has sustained its gains over the past month, up 4.31%.
Also, BTC has recorded an increase of over 8.20% within this period. Investors are now watching for more market-moving news.
Powell’s Speech and Economic Data in Focus
Investors anticipate two significant events this week that could impact the broader market. The first is Fed Chairman Jerome Powell’s upcoming speech later today.
Secondly, the U.S. government will release the U.S. non-farm payroll report on Friday. This report shows how many jobs were created in the Country.
Powell’s National Association for Business Economics speech will address the U.S. economic outlook. His comments, particularly about inflation and interest rates, are expected to impact the market, including cryptocurrencies.
Augustine Fan, Head of Insights at SOFA.org, does not expect Powell to make any significant announcements. “Investors are likely expecting similar remarks to his previous FOMC speech,” Fan said. Still, any unexpected statements could sway the market.
Friday’s non-farm payroll data will also significantly influence market direction. This report gives a snapshot of the U.S. job market and the economy’s overall strength.
Last month’s data, according to TradingView, showed a weakening labor market. If this trend continues, it could influence the Federal Reserve’s approach to interest rates, potentially affecting Bitcoin and Ethereum prices.
Crypto Market Sentiment and Future Outlook
Market analysts believe the upcoming payroll data could reinforce the Fed’s current interest rate stance.
Rachael Lucas from BTC Markets said, “Stronger-than-expected employment data may benefit risk-on assets like Bitcoin and Ethereum.”
Fan from SOFA.org mentioned that current macroeconomic conditions are favorable for crypto. He believes this environment will support crypto prices heading into the fourth quarter.
“With crypto correlations high to macro assets, we consider the current backdrop a strong tailwind,” Fan explained. However, Fan also highlighted potential political factors.
U.S. Vice President Kamala Harris has shown support for crypto during her campaign.
From Harris’ latest speech today she says that the US should become “Dominant in Blockchain”
I’m sure the “silence isn’t enough” “digital assets isn’t enough” crowd will move the goal post again.
But: progress!
— Adam Cochran (adamscochran.eth) (@adamscochran) September 25, 2024
“We will encourage innovative technologies like AI and digital assets while protecting consumers and investors,” said the presidential aspirant.
This political backing could further influence crypto markets, especially as investors shift to buying the dip.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
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