Crypto suffers as NFP Data Looms
The cryptocurrency landscape took a hit on September 4th as anticipation for the U.S. non-farm payrolls data grips traders. Bitcoin plummeted to $110,000, dragging other altcoins with it. The collective market cap dropped slightly to $3.82 trillion.
This downturn stems mainly from the looming NFP figures, essential in determining if the Federal Reserve will adjust interest rates.Recent reports,though,have set cautious expectations. As a notable example, July experienced a substantial decline in job vacancies. Additionally, the private sector added just 54,000 jobs in august, well below the anticipated 65,000.
Economists predict that the NFP might reflect 75,000 new jobs in August. Such a scenario could signal a 0.25% interest rate cut by the Fed.
- BTC fell to nearly $110,000.
- Altcoins like ETH, XRP, and BNB retreated.
- Overall crypto market cap declined.
sentiment in the crypto sphere isn’t to gloomy either. The Crypto Fear and Greed Index is currently at a neutral level of 44. This is influenced by metrics like price momentum and market volatility. For context, when sentiment is neutral, cryptocurrencies tend to fluctuate.
Together, the Altcoin Season Index stays constant at 52. Some major altcoins’ retracement led to this stability. Furthermore, liquidation instances shot up by 10%, reaching $228 million in the last day. Increased liquidations often mean higher selling pressure.
Looking ahead, there’s hope for a crypto recovery this month with interest rate implications from the Fed. Another factor could be the potential approval of exchange-traded funds for altcoins.
