Bitcoin and ether prices have retraced some of their recent gains as investors await significant macroeconomic events this week. Bitcoin fell 2.09% in the last 24 hours to around $64,403, while ether decreased by 1.69% to $2,626.
Last Friday, Bitcoin reached nearly $66,500, its highest level since July, following lower-than-expected personal consumption expenditure (PCE) data and new stimulus measures from China.
According to Rachael Lucas, a crypto analyst at BTC Markets, "Bitcoin appears overbought on the daily chart, with its price rolling over after reaching a high of $66,498 on Friday." Similarly, ether has struggled to regain strength, losing momentum after breaking its 50-day simple moving average.
Investors are focusing on two major events: Fed Chair Powell's speech at the National Association for Business Economics and the U.S. non-farm payrolls report.
Powell is expected to discuss the economic outlook and provide insights into the Fed's monetary policy. Lucas noted, "Powell’s comments, particularly on inflation and interest rates, often move markets, and crypto is no exception." A hawkish tone could further dampen market sentiment.
The U.S. Labor Department will release its monthly non-farm payrolls report on Friday, which could shed light on the job market and overall economic strength. Lucas mentioned that stronger-than-expected employment data could positively influence Bitcoin and Ethereum prices.
August's data indicated a weakening labor market, but expectations are for improvement in the September data. Augustine Fan from SOFA.org believes that the markets are likely to remain bullish in the near term, driven by favorable macro conditions.
"With crypto correlations staying high to macro assets, particularly against the SPX, we consider the friendly macro background to remain a strong tailwind for crypto prices into the fourth quarter," Fan stated.
The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. This article is provided for informational purposes only and is not intended as legal, tax, investment, or financial advice.
