- US Unemployment Data & Its Influence on Crypto
- European Financial Uncertainty & Crypto Investors
- China’s Economic Stimulus & Its Impact on the Global Crypto Market
Next week, the cryptocurrency market is set to enter the fourth quarter of the year with high expectations, as historically, Q4 has been highly favorable to the market. Key macroeconomic factors that may influence the crypto market next week include US unemployment data, financial uncertainty in Europe, and economic stimuli in China.
US Unemployment Data & Its Influence on Crypto
Recently, the United States Federal Reserve implemented a 50-basis point interest rate cut. A crucial employment dataset is scheduled to be released next week. The US Unemployment Rate is currently 4.2%. Forecasts suggest no changes in this rate. A rate cut is positive for the crypto market, as it encourages investors to choose riskier assets like cryptos. A weak job market leaves the US Fed with no option but to go ahead with further interest rate cuts, potentially boosting the crypto market.
European Financial Uncertainty & Crypto Investors
Falling energy prices have brought leading European economies to the brink of deflation, sparking rumors of additional rate cuts. This combination is quite unfavorable for the Euro, potentially leading European investors to turn to cryptos. The UK, which recently witnessed political changes with Labour Party leader Keir Starmer's victory, faces issues like persistent inflation and low consumer confidence. A budget report is expected next month. Economic instability in major economies usually prompts investors to switch to cryptos.
China’s Economic Stimulus & Its Impact on the Global Crypto Market
Rumors suggest China is experiencing a severe economic crisis. The country recently announced a hefty economic package. Next week, key data will be released for the first time since the stimulus announcement. Positive impact on the Chinese economy could reflect globally, benefiting the crypto market.
In conclusion, the macroeconomic factors expected next week appear favorable for the growth of the cryptocurrency market.
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