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The cryptocurrency market started the week strong, with Bitcoin surging by 3.73% and altcoins also experiencing gains as investor optimism builds ahead of key US macroeconomic events.
Key Notes
The Federal Reserve is closely monitoring jobs and retail sales data to inform its next interest rate decision.Strong economic indicators could shift the outlook toward re-acceleration rather than a recession or soft landing.Industrial production data and corporate earnings reports from major US companies will impact investor sentiment in traditional market and crypto.The cryptocurrency market has kickstarted the week on a good note with the Bitcoin BTC $65 956 24h volatility: 5.3% Market cap: $1.30 T Vol. 24h: $34.42 B price surging 3.73% and currently trading at $64,831 levels as of press time. Along with Bitcoin, altcoins have also registered an upside movement as investor sentiment remains optimistic ahead of the four key macro events in the United States this week.
All eyes are currently on the US labor market which has been strong so far preventing the Fed from announcing additional rate cuts. The US Department of Labor’s Bureau of Labor Statistics (BLS) stated that although the job market has softened, the unemployment rates remain low.
As jobs data comes into focus, the Federal Reserve is assessing its next interest rate decision, aiming to balance its dual mandate of employment and price stability. Speaking on the inflation metrics, an industry-leading macro-research platform the Kobeissi Letter writes:
“US consumers’ inflation expectations for the next 5-10 years skyrocketed to 7.1% in October, the highest in over 40 years. This metric has DOUBLED in just several months, according to the University of Michigan Consumer Survey.”
An increase in initial jobless claims could signal economic strain and a softening labor market. In response, decreased consumer spending and reduced investments in stocks and bonds might prompt some investors to shift toward cryptocurrencies.
Furthermore, the US economic data also shows that retail sales will be in focus this week. Similar to the jobs data, this report also influences decisions on inflation trajectory while giving a hint into consumers’ ability to pay.
Economists predict a 0.7% month-over-month (MoM) increase in retail sales, a notable development amid concerns of an impending recession or soft landing. A strong rise in retail sales could signal a shift toward a “no landing” scenario or even economic re-acceleration.
Will US Industrial Production and Corporate Earnings Impact the Crypto Market?
The industrial production data provides a glimpse into the overall health of the manufacturing sector, which is a key driver for economic growth. Additionally, the Federal Reserve’s monthly index along with related capacity and utilization rates, tracks activity in manufacturing, mining, and utilities.
Robust data for industrial production highlights the signal strength in the broader economy while boosting investor confidence across multiple asset classes, including Bitcoin and altcoins.
On Tuesday, October 15, all eyes will be on corporate earnings including top players like Citi Bank (C), Bank of America (BoA), and Charles Schwab (SCHW). This data release will highlight the financial strength across the US companies.
Robust corporate earnings typically lead to positive market reactions, boosting stock prices and investor confidence. This heightened optimism can extend to the cryptocurrency market, as investors look for higher returns in a thriving economic climate.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
