Crypto Market Awaits Key Economic Data Amid Government Shutdown
The crypto market was gearing up for Friday’s U.S. non-farm payrolls data, a critical economic indicator. However, the ongoing government shutdown, now in its fourth day, has put this data on hold. This report was expected to influence the Federal Reserve’s interest rate decisions, impacting the crypto market.
Economists predict the economy added 39,000 jobs in September, up from 22,000 in August, with the unemployment rate staying at 4.3%. A weaker jobs report coudl be good for cryptocurrencies, as it might lead to a rate cut.However,Fed officials like Raphael Bostic and Jerome Powell have warned against cutting rates too soon due to inflation.
Several major token unlocks are also happening this week. According to DeFi Llama, around $280 million worth of tokens are unlocking. Notable ones include Zora, Sui, and Optimism. These events could affect market dynamics.
Q4 is historically a strong period for cryptocurrencies. Bitcoin’s average Q4 return since 2013 is 85%, while Ethereum’s is 23% since 2016. With recent market corrections, this seasonal trend could support a rebound.
Looking ahead, several events could drive prices higher. These include potential altcoin ETF approvals, further Fed rate cuts, and the Ethereum Fusaka upgrade.These factors set the stage for a perhaps strong finish to the year in the crypto market.
