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Crypto Market Slips 2% as Traders Await Key Economic Data and Fed Chair Speech  

Top Cryptos CFN
  • Bitcoin trades near $64,500 after the crypto market drops 2%, signaling cautious sentiment.
  • Market participants await key economic data and Federal Reserve Chair Jerome Powell’s speech.
  • September’s 8% Bitcoin gain hints at potential for a positive Q4 despite current market dip.

The crypto market has started the week with a 2% decline, with Bitcoin trading near $64,500. Traders remain cautious as they anticipate critical economic data releases and a speech by US Federal Reserve Chair Jerome Powell later today. The overall market capitalization currently stands at $2.3 trillion, reflecting a muted sentiment.

Market participants are focusing on Powell’s upcoming speech, which is expected to address the central bank’s policy outlook after a recent 0.50% rate cut. Any further hints on monetary policy adjustments could significantly impact the market, as concerns grow over the Federal Reserve’s approach to managing inflation. 

According to a Reuters survey, 39% of economists believe that mishandling interest rates could pose the most significant economic risk in the coming months.

Beyond Powell’s speech, traders are closely monitoring several key economic indicators scheduled for release this week. Among them are the S&P Global US Manufacturing PMI and the ISM Manufacturing Index, which provide insights into the health of the US manufacturing sector. 

Additionally, jobs data due later this week could weigh heavily on the Federal Reserve’s next decision regarding interest rates, which is expected in November.

Despite Monday’s downturn, Bitcoin remains on track to end September with an 8% gain. Historical trends suggest that positive performance in September often translates to a strong Q4.

Analysis by crypto expert Ali Martinez highlights that only four September months since 2013 have closed with gains, hinting at potential further growth in the final quarter of the year.

Economic concerns persist, with S&P Global Ratings projecting US GDP growth at 2.7% in 2024 and a lower forecast of 1.8% for 2025.

The ratings agency also sees a 25% probability of a recession within the next year. However, analysts maintain that Bitcoin’s recent upward momentum could carry over into the year’s end despite the current market dip.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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