The crypto market started the week with a 2% decline. The total market value fell to $2.3 trillion, with Bitcoin trading at around $64,500.
Crypto Market Drops 2% on Monday
The global cryptocurrency market capitalization dropped 2% on Monday, reaching $2.3 trillion. Bitcoin shows muted performance on hourly time frames, remaining around the $64,500 mark. The decline occurred amid the anticipation of key economic data and a speech by US Federal Reserve Chair Jerome Powell.
Upcoming Speeches and Data
Fed Chair Jerome Powell will speak today and is expected to discuss policy outlook after the recent 0.50% rate cut. Powell's speech is economically significant as a Fed mistake may impact the economy. According to a new Reuters survey, 39% of economists cite improper application of the interest rate tool against inflation as the top economic risk. The crypto market is also subdued ahead of upcoming reports like S&P Global US manufacturing PMI and September ISM Manufacturing data. Jobs data is another crucial economic indicator for the week, influencing the Fed's next monetary policy decision in November.
Bitcoin Year-End Prospects
US spending data also reflects the overall health of the economy. In August, consumer spending rose moderately, but analysts foresee more rate cuts in Q4. S&P Global Ratings predicts real GDP growth for the US to be 2.7% in 2024 and 1.8% in 2025, with a 25% probability of a US recession in the next 12 months. Despite current economic challenges and Monday’s muted crypto market performance, Bitcoin may end the year positively. The cryptocurrency is closing September with monthly gains around 8%. According to an analysis by Ali Martinez, only 4 September months since 2013 ended with gains. Historically, this also signifies a positive Q4 with increasing monthly returns.
The crypto market started the week on a down note, but despite current economic challenges, Bitcoin has the potential to end the year on a positive note due to historical data and current analytical forecasts.
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