Connect with us
Active Currencies 17820
Market Cap $3,949,760,757,936.70
Bitcoin Share 59.47%
24h Market Cap Change $-3.92

Crypto week ahead – How U.S labor updates can affect Bitcoin, Ethereum

2min Read

U.S labor market updates and November Fed rate cut expectations to set next market direction.

Crypto week ahead - How U.S labor updates can affect Bitcoin, Ethereum
Share this article

  • BTC retested $66k following better-than-expected August inflation data
  • U.S labor market update could set the next market direction

Bitcoin [BTC] edged higher and retested $66k on Friday following a softer reading from the U.S Fed’s favorite inflation data – The Core PCE Index (Personal Consumption Expenditure). This index tracks U.S inflation without the noise from food and energy price fluctuations. 

The August Core PCE index reading came in better than expected, with a YoY (year-on-year) hike of 2.6%. This was contrary to market expectations of 2.7%.

The low inflation data boosted the markets as speculators priced higher odds of another 50 bps (basis points) Fed rate cut in November.  

crypto week ahead

Source: CME FedWatch

Next market catalyst

The low inflation data meant that the Fed would now focus on the U.S labor market’s status, especially the unemployment rate, when adjusting its pace of interest rate cuts accordingly.

Ergo, upcoming U.S labor sector updates will impact the next market direction, noted trading firm QCP Capital.

Part of the firm’s weekend brief on 28 September read

“As we head into next week, the key focus will be on upcoming labour market indicators, including JOLTs, ADP, and U.S unemployment rate.”

The key updates to watch out for are the JOLTs (Job Openings and Labor Turnover Survey) and employment situation scheduled for 1 and 4 October. Projecting the updates’ potential market impact, QCP Capital added, 

“Strong performance in these metrics could bolster the case for a 50bps cut in November, further propelling risk assets.” 

If that is the case, BTC could edge even higher towards $70k after the recent bullish market structure shift. Especially after it reclaims the 200-day MA (Moving Average). 

Crypto week ahead Bitcoin

Source: Daan Crypto/X

The lift-off could also benefit Ethereum [ETH]. In fact, ETH has been outperforming BTC since the Fed’s pivot.

So, an extra macro tailwind could extend ETH’s remarkable recovery on the charts. In fact, according to market analyst Benjamin Cowen, ETH could hike to the psychological level of $3000 too. 

Crypto week ahead BTC ETH

Source: Cowen/X

That being said, the top digital assets saw renewed demand from U.S investors. This week, U.S BTC ETFs saw $1.11 billion inflows, the largest weekly inflows since 19 July. 

A similar, but limited investor appetite was also observed in ETH ETFs. The products attracted $84.6 million inflows, the largest weekly demand since 9 August. If the trend continues, the $3k per ETH and $70k per BTC price targets could be feasible. 

Share
Benjamin Njiri is a Crypto Analyst and Journalist at AMBCrypto who specializes in technical analysis and identifying emergent market trends. He excels at breaking down complex chart patterns and on-chain data to make them accessible and actionable for investors. His rigorous analytical approach is founded on his academic background as a Telecommunication Engineering graduate. This discipline has equipped him with an expert understanding of signal processing and data analysis, allowing him to systematically filter market noise from true trend signals with engineering precision. Armed with this unique perspective, Benjamin focuses on providing clear, data-driven insights into the digital asset landscape. His work is dedicated to demystifying the intricate world of cryptocurrencies, empowering readers to understand the forces that shape the market and to navigate it with greater confidence.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.
Thank you for subscribing to Unhashed.