Crypto, Employment Data Impacted By Wells Fargo, BoA Foreca…

Bitcoin is nearing a key level, testing $92,000 and potentially heading towards $88,000 and $85,000 if current trends continue, impacting altcoins and pushing ETH below $3,000. The focus is on Thursday’s Non-Farm Employment report, which includes delayed September data and may have limited reliability.

Global events and U.S. economic indicators significantly influence cryptocurrency markets, as experienced during the 2022 interest rate hikes. Recent shifts in expectations for a December interest rate cut, coupled with Japanese government bond yields hitting new highs and AI-driven market activity, have dampened investor appetite.

The market has already experienced significant liquidations, with an additional $725 million triggered in the last 24 hours. Open positions are decreasing, and Thursday’s employment report is expected to increase volatility.

Wells Fargo analysts anticipate 45,000 new jobs in September, aligning with the consensus unemployment rate expectation of 4.3%. They note mixed signals from alternative labor market data and expect continued weakness in employment. A rise in the unemployment rate above 4.4% could pressure the Federal Reserve to consider a December rate cut, potentially boosting crypto.

Bank of America expects 65,000 jobs added in September, focusing on the revision of August numbers. They express concerns about a slowdown in demand-driven labor and anticipate the postponement of a rate cut, which could negatively impact crypto. This contrasts with Wells Fargo’s more dovish outlook, creating considerable uncertainty in the market.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.