September proves to be a tough month for cryptocurrencies. While the market shows some positive changes, Bitcoin still struggles to rise above the $112,500 mark.
Start of the Week for Cryptocurrencies
Bitcoin kicked off the week with relatively positive news, however, it remains below the significant mark of $112,500. China released statistics on export growth which showed a decline in shipments to the U.S. and a six-month low in export growth. Nevertheless, the increase in exports to other countries contributed to a record trade surplus of $1.2 trillion.
Comments from QCP Capital Analysts
QCP Capital analysts noted that discussions around the Fed’s independence will be at the forefront this September. In their recent report, they warned of potential issues in the labor market. The noted data confirmed weak employment figures from early June and increased expectations for rate cuts.
CITE_NA: "Two-year U.S. Treasury yields are at the lowest levels of the year, as the market anticipates a 72 basis points rate cut for the remainder of the year."
Questions and Answers about the Crypto Market
Why aren’t cryptocurrencies rising? The current situation reflects caution from investors regarding the upcoming inflation report. If the Fed sees an increase above 0.3% month-on-month, it may complicate the rate-cutting path, leaving investors awaiting data.
CITE_NA: "However, even if there's a temporary spike due to tariffs, considering the current economic situation, it’s unlikely Trump will escalate trade tensions further. Thus, apart from sudden reactions to this week’s data, cryptocurrencies appear to have solid support with no significant catalysts on the horizon."
September brings uncertainty to the cryptocurrency market, where expectations for rate cuts continue to impact price dynamics. Investors need to closely monitor economic indicators to develop a clearer outlook for the future.
