On October 4th, the overall cryptocurrency market showed a divergent trend, growing following an unexpected increase in US job creation reported by the Department of Labor.
Bitcoin was seen trading above $62,200 on the back of broad stock market gains.
In this case, the high volatility and day-to-day divergence was the impact of the September nonfarm payrolls report showing that the U.S. economy added 254,000 jobs, much more than expected by 147,000. Meanwhile, the unemployment rate fell to 4.1%.
Cryptocurrency market volatility reflects global uncertainty amid war and inflation
The strong jobs report reassured investors that the U.S. economy was resilient and changed expectations for aggressive interest rate cuts from the Federal Reserve. CME Group’s federal funds futures prices, which track market expectations for future interest rate trends, show the probability of another 0.5% rate cut in November is less than 2% on October 4, up from more than 50% last week. showed a sharp decline to its lowest level. The curve steepened as better-than-expected U.S. jobs data showed a robust labor market and eased concerns about the Federal Reserve’s aggressive interest rate cuts.
According to Binance’s Monthly Market Insights for October 2024, Ethereum’s inflation rate has soared to 0.74%, casting a shadow on its “super healthy money” story. It shows that Ethereum’s issuance rate is at a two-year peak due to a decline in on-chain activity. And the decline in burn rates raises questions about the sustainability of deflationary assets. This is further fueled by the growth of layer 2 solutions such as Arbitrum and Optimism, which process transactions off-chain and significantly reduce gas fees.
As tensions between Israel and Iran escalate and Russia’s invasion of the eastern Ukrainian village of Vgledal continues, many countries are on high alert and “World War III” is trending on Twitter. This has had various effects on the cryptocurrency market. Although a full-scale war may not happen anytime soon, the possibility of a peaceful solution appears to be effectively discredited in the current scenario. In these uncertain times, where difficult financial conditions are expected to continue, some believe that cryptocurrencies may hold the solution.
‘Uptober’ pessimism could accelerate Bitcoin’s surge
October was once touted as an “uptober” month, but it is losing the momentum that once drove this month’s bull market. According to analytics firm Santiment, mentions of “Uptober” on social media have ceased since the beginning of this month.
Recently, Santiment reported that traders have turned bearish as hopes of automatic crypto market profits have been abandoned this month. Instead, social media has shifted to memes and references to “Selltober” and “Octobear.” At the very least, it reflects growing pessimism.
🎃 Mentions of “Uptober” have dropped significantly, highlighting that traders are becoming more bearish on the idea that this month will become a crypto printing machine. Lack of optimism opens the door to (at least) a short-term recovery. 📈 https://t.co/iACWMGPvSs
— Santiment (@santimentfeed) October 3, 2024
Young voters, primarily Gen Z and Millennials, will be a key force in the upcoming election, with more than half likely to support a candidate who supports crypto policies, according to research from the Stand With Crypto Alliance. . In battleground states, 21% of voters prioritize crypto issues. This demographic shift is influencing political stances, with figures like Donald Trump accepting crypto donations and advocating for securing Bitcoin reserves, while Robert F. Junior and Kamala Harris have also begun to show support for cryptocurrencies.
CPI and PPI report could dictate BTC’s next move
This is a critical time for the crypto market, with investors anticipating that next week’s CPI and PPI reports could have a significant impact on Bitcoin’s price.
Even though Bitcoin is hovering around the $62,000 support level, this economic indicator could trigger a breakout that could change investor sentiment and therefore the future of the market in the coming days. movement may be affected. These are the changes this report may bring and are being closely monitored by cryptocurrency market analysts.
The CPI and PPI are important indicators of inflation trends, influencing both consumer spending and producer pricing. Assets that would otherwise be seen as hedges against inflation, like Bitcoin, will be valued precisely on the basis of their impact.
When inflation data is positive, investors’ confidence increases and they allocate more money to assets that are considered good investments. Bitcoin’s price has risen, reflecting its growing status as a macroeconomic asset, as economic uncertainty continues and monetary policy remains key. Bitcoin has evolved from a speculative asset to an established inflation hedge in the financial industry.
✓ Share:
Teuta
Teuta is a veteran writer and editor with over 15 years of experience in the macroeconomics, technology, cryptocurrency and blockchain industries. He started his career in 2005 as a lifestyle writer for Cosmopolitan magazine in Croatia and went on to cover business and economics for prestigious publications such as Forbes and Bloomberg. Influenced by figures like Don Tapscott and Bruce Dickinson, Teuta embraced the blockchain revolution, believing that cryptocurrencies are one of humanity’s most important inventions. Her fintech efforts began in 2014 and focused on cryptocurrencies, blockchain, NFTs, and Web3. Known for his excellent teamwork and communication skills, Teuta holds a double master’s degree in political science and law, loves punk rock and Chablis, and has a passion for shoes.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
