The cryptocurrency market at the beginning of September shows weak results against the backdrop of new sanctions and legal conflicts. This article examines the current state of the market and its participants' expectations.
Current Status of Cryptocurrencies
On September 3rd, investments in Bitcoin ETFs continued, helping to lift the negative atmosphere surrounding the market. Despite robust institutional demand, Bitcoin has fallen below a critical support level of $112,500, with $108,000 providing another support barrier to prevent further declines.
The loss of momentum in Bitcoin is noticeable, and given September's historical performance, this raises concerns among investors. Market participants are exercising increased caution towards altcoins, many of which are experiencing daily losses in the range of 1-3%.
While the negative flow in Ethereum ETFs has weakened, a complete reversal has yet to occur. Yesterday saw a net outflow of $38.2 million, indicating reduced interest. Ethereum’s continued closure below the critical $4,600 level is also influencing the entire altcoin market.
Crypto News and Market Reactions
Today, the market awaits the release of ADP Employment Change and PMI data. Yesterday's JOLTS employment figures confirmed a softening labor market. Fed member statements highlight this softening, making a September rate cut less likely without additional unfavorable data.
Expectation for Non-Farm Employment stands at 75,000, significantly lower than previous projections, which have been revised down to 150,000. Unemployment data, NFP, and average earnings data expected tomorrow could escalate market volatility.
If the data meets expectations, the cryptocurrency market could respond with a rally, supported by rate cut expectations. However, ongoing controversies surrounding Cook's potential ousting and Fed independence, exacerbated by Trump's maneuvers, create a shadow over a more optimistic narrative.
Predictions and Expectations
Despite the prevailing negative sentiment, there remains the potential for recovery in the market. The declining outflow rates below $200 million and the presence of inflows to ETFs could support an uptrend. Developments in the labor market and potential changes in monetary policy could significantly influence the state and dynamics of cryptocurrencies.
The cryptocurrency market in September faces numerous challenges, but certain factors may contribute to improving conditions. The market awaits important employment data that could change the current dynamics.
