SUMMARY
- Bitcoin dropped 2.07% to $63,700, and Ether fell 1.69% to $2,624, following a strong bull run last week.
- Investors are eyeing Fed Chair Jerome Powell’s Monday speech and Friday’s non-farm payroll data, which could impact the market.
Bitcoin and Ether retraced some of their recent picks up on Monday morning in Asia, with Bitcoin falling 2.09% over the past 24 hours to around $63,703. The drop takes after a solid rally last week, where Bitcoin traded around $66,500, its most noteworthy level since July. This boost was driven by the release of lower-than-expected personal consumption expenditure (PCE) information and a set of stimulus measures from China aimed at boosting its economy. In any case, crypto analyst Rachael Lucas from BTC Markets noted that Bitcoin appears overbought on the daily chart, and momentum has begun to fade since its recent peak.
Ethereum is facing similar issues, with its price slipping 1.69% in the past 24 hours to $2,626. After breaking its 50-day simple moving average last week, Ether has battled to recapture momentum. Lucas mentioned that both major cryptocurrencies are being influenced by broader market concerns, as investors move their focus to two basic macroeconomic information later this week. The first is U.S. Federal Reserve Chair Jerome Powell’s speech at the National Association for Business Economics, where he may offer bits of knowledge into inflation and interest rates. His comments have the potential to move market opinion, particularly if he takes a hawkish position on inflation, which might add to the risk-off sentiment currently weighing on the market.
Another key event is the release of the U.S. non-farm payroll data on Friday, which will give an updated view at the nation’s job market. This information is anticipated to be closely observed, as it could offer clues about the strength of the economy and further impact the Federal Reserve’s approach to monetary policy. Concurring to Lucas, stronger-than-expected employment numbers might support the Fed’s current approach to interest rates, which might be advantageous for risk-on resources like Bitcoin and Ethereum.
However, not everybody accepts that Powell’s speech will have a noteworthy effect on the markets. Augustine Fan, Head of Insights at SOFA.org, proposed that Powell is unlikely to make any market-moving statements, noticing that recent inflation information has been moving in his favor. Fan also pointed out that crypto remains profoundly correlated to macro resources, especially the SPX index, which has made a favorable environment for crypto prices in the near term.
Fan remains optimistic about the overall viewpoint for cryptocurrencies, anticipating that the positive large-scale backdrop will proceed to bolster the market heading into the fourth quarter. He also highlighted the potential impact of political components, noticing that the Kamala campaign has been communicating support for crypto, which may further boost investor certainty. As a result, Fan accepts that price plunges might present buying openings, with many investors likely to switch to a ‘buy-the-dip’ technique in the weeks ahead.