-1.10%
“Ahead of next week’s U.S. nonfarm payrolls report, we expect market volatility to continue to trend lower as markets brace for a possible Fed rate cut,” QCP Capital analysts said.
According to QCP Capital, next week’s U.S. nonfarm payrolls numbers and Friday’s GDP data are expected to provide market participants with greater clarity on the likelihood and size of a rate cut at the Federal Open Market Committee (FOMC) meeting on September 18.
Key U.S. Economic Data Released
The US nonfarm payrolls data is due out on Friday, September 6. This closely watched indicator could influence the Federal Reserve’s decision on the trajectory of interest rates. The previous nonfarm payrolls report, released in early August, showed the US unemployment rate unexpectedly rose to 4.3% from 4.1%, sparking a global market selloff amid concerns that the Fed may fall behind in its efforts to cut rates.
QCP Capital analysts also highlighted the impact of the US GDP report, which is due out today, on Bitcoin price performance, but noted that the impact on the cryptocurrency market would be small, especially if it reinforces the prevailing narrative that the US economy is slowing down. While the economy is showing signs of slowing down, it is still unclear whether a recession is imminent.
The analysts observed that derivatives market participants were hedging against potential short-term downside moves in both Bitcoin and Ethereum. They said, “The risk reversal through October remains heavily biased towards puts for both Bitcoin and Ethereum, indicating that the market remains cautious on the downside.”
The price of Bitcoin It fell 1% over the last 24 hours to trade at $59,500 at 7:39 AM ET. Bitcoin According to CoinGecko data, its dominance is 53.9% and Ether dominance is 13.9%.
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