As a seasoned analyst with over two decades of experience in financial markets under my belt, I’ve seen more market cycles than I can count on both hands. Today, I find myself looking at Bitcoin and altcoins with a mix of intrigue and caution.
Today, Bitcoin (BTC) and other altcoins have experienced a slight downturn in the early Asian trading hours, as investors prepare for potential market fluctuations due to the upcoming speech by the Chairman of the U.S. Federal Reserve, Jerome Powell, as well as the anticipated release of US jobs data on Friday. Currently, Bitcoin is valued at approximately $63,509, with a 24-hour volatility rate of -3.1%. The total market capitalization stands at around $1.26 trillion, while the 24-hour trading volume amounts to $24.57 billion.
Currently, Bitcoin’s price has dropped by over 2% and is being exchanged at approximately $64,217, with a total market capitalization of around $1.269 trillion. Last Friday, the price of Bitcoin reached its highest point since July, peaking at $66,500. The significant increase in Bitcoin’s price was primarily driven by lower-than-expected Personal Consumption Expenditure (PCE) data.
Meanwhile, China’s central bank (PBoC) has announced a significant injection of $140 billion into their economy to strengthen it, as economic conditions weaken. It appears that Chinese investors are also turning towards Bitcoin as a secure investment option in these uncertain times. In response to this news, Rachael Lucas, a crypto analyst at BTC Markets, offered her insights on the situation.
On the daily chart, Bitcoin seems excessively bought, as it has started to decline following a peak at $66,498 last Friday. Over the past week, its upward momentum appears to be slowing down.
In addition to Bitcoin, various altcoins such as Ethereum and Binance Coin are experiencing significant drops of around 2-4%, while meme coins like Dogecoin, Shiba Inu, and Pepe Coin are also correcting by approximately 5-10%. These coins had seen a notable surge in the past week, but have taken a downturn today. Here are their respective statistics:
Following a robust surge in the past few weeks, there could be a phase of stability or leveling off in the market, prior to the anticipated ‘Uptober’ surge.
Two Major Macro Events – Powell Speech and NFP
This week, crypto enthusiasts will keep a close eye on two significant economic events. Firstly, the speech by Federal Reserve Chair Powell at the Association for Business Economics later today. Secondly, the release of the U.S. non-farm employment data on Friday.
As a researcher, I’m eagerly anticipating the speech by the Federal Reserve Chair later today, where they will discuss the economic outlook and provide insights into the Fed’s monetary policy. Previous comments from Chair Powell, specifically regarding inflation and interest rates, have shown a significant impact on financial markets, including cryptocurrencies. If his tone appears hawkish, it could intensify risk-off sentiments and potentially contribute to the ongoing market declines today.
Some market analysts think Powell may not make any significant market-impacting announcements. According to SOFA.org’s Head of Insights, Augustine Fan, investors anticipate him to reiterate similar sentiments as in the previous FOMC meeting, given that recent inflation data has been favorable to his dovish stance during his last Q&A.
This coming Friday, the U.S. Department of Labor will publish its monthly report on non-agricultural employment, offering valuable insights into the country’s job market and overall economic condition. While August’s data signaled a weakening labor market, BTC Markets analyst Lucas predicts an improvement in September’s figures. According to Lucas, robust employment numbers could reinforce the Federal Reserve’s current policy on interest rates, which might positively impact riskier assets such as Bitcoin and Ethereum.
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2024-09-30 13:45