Bitcoin begins the second week of September fighting to preserve a key support level. This week, the markets are bracing for an upsurge of macroeconomic volatility triggers.
Over the weekend, Bitcoin suffered a 5% market drop, affecting the rest of the crypto market. At the time of publishing, CoinGecko’s on-chain data shows Bitcoin trading is above $55,000. BTC’s value stands at $55,365, which is a 1.4% increase over the last 24 hours. However, today’s BTC value is 5.3% lower compared to its value 7 days ago.
This week, the crypto market is at the mercy of key economic data, especially from the United States of America. According to an X post shared by The Kobeissi Letter, CPI precedes key Fed rate cut decision.
The trading data source writes, “This is the final week of inflation data before the long-anticipated September Fed meeting.” This week’s US macroeconomic data precedes the crucial Federal Reserve interest rate decision on September 18.
In the days to come, the Consumer Price Index (CPI) and Producer Price Index (PPI) numbers for August will be released, as well as additional unemployment data. Investors are now waiting for any last-minute shocks that might alter expectations of the Fed’s next actions.
According to the most recent CME Group FedWatch Tool projections, markets continue to prefer a more moderate interest rate drop – 25 basis points rather than 50.
The coming week might see more risk reduction with a lack of positive catalysts on the horizon. The focus will be on the US presidential debate on Tuesday, along with a busy week of inflation data and central bank speeches across the globe.
Crypto, especially Bitcoin, has emerged as a key issue in the forthcoming November election, despite the fact that it was not discussed in the previous debate between Trump and incumbent US President Joe Biden.
The US presidential nominees, Donald Trump and Kamala Harris, are slated to hold their first televised debate this week. According to sources, the latest polls show the two are neck-to-neck.
Bitcoin and Ether underperform amid bad US economic data
In the wake of Friday’s bearish US economic data, Bitcoin and Ether have continued to trade below critical price levels despite a decline over the weekend.
The most recent non-farm payroll (NFP) data from the United States was released on Friday. This data critically indicates the country’s economic health, inflation, and employment. In August, the US nonfarm payrolls increased by 142,000, which was less than the market’s projection of 160,000.
On the day of the economic data’s release, Bitcoin briefly declined to around $52,850, while Ether momentarily plummeted to around $2,160 on Friday. However, the US unemployment rate released on the same day sent positive signals, dropping to 4.2%.
Source: https://www.cryptopolitan.com/how-low-can-bitcoin-go-5-things-this-week/