The crypto market is awaiting US job data and comments from Fed officials, which might affect the rally in Bitcoin and other cryptocurrencies.
The crypto market anticipates major events like the US job data next week. One of the most anticipated data sets for the following week would be the employment numbers, confirming speculation about the impending Fed rate decreases. Additionally, it will affect the performance of altcoins and Bitcoin in the coming days.
Furthermore, several Fed officials are scheduled to speak next week, which could offer further insights into the US central bank’s future posture and policy rate intentions.
Crypto Market Expects US Job Data
Investors will be keeping a careful eye on Friday, September 6, when the US Job Data is expected. It would prepare the way for the US Federal Reserve‘s next policy rate actions.
Market analysts predict the US jobless data for August will increase to 162,000 from 114,000 in July. However, the expected monthly unemployment rate is 4.2%, a decrease from the 4.3% recorded in July.
Knowing the employment statistics is essential to comprehend the state of the country’s economy. Cooling non-farm payroll figures and an increase in the unemployment rate typically elevate sentiment in the crypto market.
It is also believed that the anticipated mixed data will not affect the Fed’s September rate-cutting intentions. However, if the data reveals some surprising findings, it might affect the central bank’s future stance regarding its rate-cutting ambitions, affecting the market’s mood.
US Federal Reserve Officials’ Statement
Some Fed members are slated to speak when the employment report and the important economic statistics are released next week. On September 6, for example, New York Fed President John Williams is expected to speak immediately after the US Job statistics release.
Furthermore, Fed Governor Christopher Waller is anticipated to deliver a speech on the same day. The comments will be closely watched by the cryptocurrency market and the larger financial community for any indications regarding the central bank’s impending position.
Fed Chair Jerome Powell suggested recently that rates might be lowered in September.
Will Cryptocurrencies & Bitcoin Rally?
The crypto market has seen extreme volatility over the past week, with major declines in popular cryptocurrencies like Bitcoin. Furthermore, historical evidence suggests that if the bear momentum persists in September, the price of Bitcoin might drop as low as $50,000.
In the meantime, the central bank’s next move would be greatly influenced by the aforementioned significant events. However, the latest US PCE inflation statistics indicated a lowering of inflation, which has spurred market optimism.
The CME FedWatch Tool indicates a 70% chance that the Federal Reserve will decrease interest rates by 25 basis points in September. The remaining 30% are wagering on a rate decrease of 50 basis points at the central bank’s next meeting.
