Crypto Market Awaits US Job Data; Will Fed Rate Cut Trigger Bitcoin Rally?
The crypto market eagerly awaits crucial events for next week, including the US job data. The employment figures would be one of the closely watched data for next week, as it would further cement bets over the upcoming Fed rate cuts. Besides, it would also impact the Bitcoin and altcoin performance in the coming days.
Additionally, several Fed officials are expected to speak next week, which would also provide insights on the upcoming stance of the US central bank with their upcoming policy rate plans.
Crypto Market Awaits US Job Data
The US Job Data is scheduled for Friday, September 6, which will be closely watched by the investors. It would set the stage for the US Federal Reserve’s upcoming stance with their policy rate plans.
According to market estimates, the US unemployment report is expected to show a rise to 162,000 for August, as compared to 114,000 in the prior month. On the other hand, the monthly unemployment rate is anticipated at 4.2%, down from the 4.3% figure noted in July.
The employment data plays a crucial role in understanding the economic condition of the nation. Generally, cooling non-farm payroll data along with the rising unemployment rate tends to boost the crypto market sentiment.
Meanwhile, the anticipated mixed data is also expected to have no impact on the upcoming Fed rate cut plans in September. However, if the data shows some unexpected results, it could weigh on the central bank’s upcoming stance with their rate cut plans, potentially impacting the broader market sentiment.
US Fed Officials Remark In Focus
Along with the key economic data, some Fed officials are scheduled to speak following the employment report release next week. For instance, New York Fed President John Williams is scheduled to speak just after the release of the US Job data on September 6.
In addition, Fed Governor Christopher Waller is also expected to speak on the same date. The crypto market, along with the broader financial sector, would be keeping a close track of the remarks for potential cues on the central bank’s upcoming stance.
Recently Fed Chair Jerome Powell hinted towards a potential rate cut in September.
Bitcoin & Altcoins To Rally?
The last week has been highly volatile for the crypto market, with Bitcoin and other top altcoins witnessing a significant decline. In addition, historical data indicates that Bitcoin price could dip to as low as $50,000 if the bear momentum continues in September.
Meanwhile, these above-mentioned key events would play a crucial role in the central bank’s upcoming decision. However, the recent US PCE Inflation data showed a cooling inflation, which has sparked optimism in the market.
According to the CME FedWatch Tool, there is a 70% probability of a 25 bps rate cut by the Federal Reserve in September. Notably, the other 30% are betting towards a 50 bps rate cut at the central bank’s upcoming meeting.
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