BITCOIN ETHEREUM FEDERAL RESERVE

Bitcoin, ether weaken ahead of Powell’s speech, non-farm payroll data this week

theblock.co 30/09/2024 - 05:21 AM

Bitcoin and Ether Market Update

Bitcoin (BTC) and Ether (ETH) retraced gains on Monday as markets anticipate U.S. Federal Reserve Chair Jerome Powell’s speech and upcoming labor market data.

Bitcoin Performance

Bitcoin’s price dropped 2.09% in the past 24 hours, settling around $64,403. The cryptocurrency reached almost $66,500 last Friday, its highest since late July, powered by lower-than-expected personal consumption expenditure (PCE) data and strong stimulus measures from China.

Rachael Lucas, a crypto analyst at BTC Markets, stated, “Bitcoin appears overbought on the daily chart, with its price rolling over after reaching $66,498 on Friday. Since last week, momentum has faded.”

Ethereum Analysis

Ethereum also struggled, losing momentum after breaking its 50-day simple moving average last week. Ether traded down 1.69% in the last 24 hours at $2,626.

Upcoming Events

Investors are focusing on two macroeconomic events: Powell’s speech at the National Association for Business Economics and the U.S. non-farm payrolls report due this Friday.

Powell may discuss the economic outlook and give insights into the Fed’s monetary policy, with potential market-moving implications, according to Lucas. Any hawkish comments could further dampen market sentiment.

August’s labor data hinted at a weakening U.S. labor market, but Lucas expects improvements in the September data. Stronger employment figures could support the Fed’s interest rate strategy and positively affect risk assets like Bitcoin and Ethereum.

Market Sentiment

Despite current price drops, Augustine Fan from SOFA.org believes the crypto market will remain bullish in the near-term, as correlations with macro assets stay strong.

Fan commented, “The friendly macro background will remain a strong tailwind for crypto prices into the fourth quarter. The Kamala camp’s support for crypto might also contribute to positive price action, encouraging investors to adopt a ‘buy-the-dip’ approach.”




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