The crypto market has come crumbling down in recent times. The trend began with a collapse in the middle of August 2024, and there has been no significant rebound. An attempt to revive it a few days ago has now failed. Bitcoin (BTC) and Ethereum (ETH) are the primary targets of any discussion when events like these are highlighted.
Analysts expect that the ongoing downturn could eventually see a chance. Speculation suggests that the crypto market will change course once the Federal Reserve releases information about payrolls and unemployment rates. Plus, there is a constant concern about the recession, which will only get carried forward if rate cuts are not taken into account. Economists believe that rate cuts are rather happening at a later date, as they should have been announced earlier to bolster investor confidence. They have also cited the targeted inflation of 2% as too aggressive.
It is anticipated that the unemployment rate will remain at approximately 4.2%, and payrolls are expected to be approximately 164,000. Both are essential economic indicators that will be taken into account when interpreting the future of the crypto market. Political scenarios across the US could potentially exacerbate this. Assuming reports are favorable, that would strengthen the current administration. Consequently, Donald Trump is portrayed as having a lower number of points. According to reports, his consistent advocacy for the industry has earned him the title of Crypto President. Kamala Harris, on the other hand, is comparatively new, with many believing that her move is more political.
Since September is associated with declines, scarcity is already prevalent. According to reports, the month has only generated negative returns since 2018, and there is no evidence to substantiate an assertion that suggests otherwise.
The unemployment rate last rose to 4.3% in July from 4.1% in June 2024. That has sent signals that a dip may not be in the picture unless it appears in the book.
BTC and ETH are down by almost 6% from their recent rallies. Bearish sentiments have led to a significant decrease in trading volumes, primarily due to traders and inventors being overly cautious about incurring losses, as they anticipate a future high. However, regular positive fluctuations would have encouraged the token to exchange hands seamlessly—this is something that has not happened in the last couple of days.
In the last 24 hours, BTC has dropped by 4.19% and is currently trading at $56,576.96. ETH is down by 4.37% during the same time window, exchanging hands at $2,399.28 right now. Bitcoin tokens are aiming to surpass $60k, while Ether is on a journey to breach the mark of $3k.
Suffice it to say, robust seasonality is expected if the Federal Reserve does not release disappointing figures to the world. This includes inflation, payroll, and rate cuts.
Source: https://www.cryptonewsz.com/crypto-market-is-projected-to-shift-gears/