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Our analysis of the situation
Bitcoin and altcoins have encountered some turbulence in the early hours of the Asian trading day, leading up to the anticipated speech by US Federal Reserve Chair Jerome Powell and the impending release of the US jobs data on Friday. This has triggered a selling pressure, culminating in Bitcoin experiencing a decline of over 2%, currently trading at $64,217 with a market cap of $1.269 trillion.
The recent surge in Bitcoin's price was quelled by lower-than-expected personal consumption expenditure (PCE) data. Simultaneously, China's central bank injected $140 billion into its economy, propelling Chinese investors to seek refuge in Bitcoin amidst the country's unstable economic climate.
Analyst Rachael Lucas of BTC Markets indicated that Bitcoin appeared overbought on the daily chart, with momentum ebbing since last week's peak. Furthermore, Ethereum, BNB Coin, and other altcoins have undergone corrections ranging from 2-4%. Meme coins like Dogecoin, Shiba Inu, and Pepe Coin, which experienced significant gains last week, faced corrections ranging from 5-10% today.
As the market shows signs of consolidation following this month's upswing, attention turns to two impending macro events – Powell's speech at the National Association for Business Economics and the release of the US non-farm payrolls report on Friday.
Powell's speech, particularly his commentary on inflation and interest rates, is expected to impact the market, potentially fueling today's declines with a hawkish tone. Despite this, some experts speculate that his address will likely echo previous sentiments, especially in light of recent favorable inflation data. The US Labor Department's upcoming monthly non-farm payrolls report provides a crucial window into the nation's job market and economic health. Any unexpected strengths in the employment data are likely to positively influence Bitcoin and Ethereum, aligning with the Fed's current stance on interest rates.
Amid the uncertainty, crypto investors are poised for an eventful week, closely monitoring how these macroeconomic developments will shape the future trajectory of the crypto market.
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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