As a seasoned crypto investor with over a decade of experience navigating the volatile digital asset market, I find myself cautiously optimistic about the current state of Bitcoin and altcoins. The recent rebound in the American nonfarm payrolls data, while not without its challenges, has sparked renewed interest in the cryptocurrency space.
The value of Bitcoin and various other digital currencies remained stable following the release of positive September non-farm employment figures by the Bureau of Labor Statistics.
US nonfarm payrolls rebound
Bitcoin’s price inched up to approximately $62,500, while Solana experienced a 3% increase to hit $140. Among the top-100 cryptocurrencies, FTX Token posted the most significant gain, surging by 20%. Notably, it has soared over 80% from its lowest point this month.
In simple terms, Shiba Inu (SHIB), a popular meme coin in the crypto market, ranked second among the best performers last week. It experienced an increase of 10%. Additionally, AAVE (AAVE), Beam (BEAM) and Celestia (TIA) were also top performers, showing significant growth as well.
Based on figures from the Bureau of Labor Statistics, the U.S. economy created approximately 254,000 new jobs in September. This is a higher number than the average prediction of 147,000 jobs. Furthermore, the BLS adjusted its previous estimate for August’s job report to reflect an increase of 159,000 jobs.
In September, the unemployment rate dropped slightly from 4.2% to 4.1%, and average wage growth increased slightly from 3.9% to 4.0%.
At a point where concerns about high inflation were intensifying due to the worsening situation in the Middle East, these figures appeared. This escalation caused crude oil prices to increase, with Brent crude reaching $78 and West Texas Intermediate hitting $75.
Consequently, it’s possible that the Federal Reserve may not reduce interest rates as dramatically as many anticipate, given Chair Jerome Powell’s cautious stance, as expressed in his statement on Monday, September 30.
Taking a more aggressive stance by the Federal Reserve could potentially have a moderate negative impact on risky investments such as stocks and cryptocurrencies.
Each passing day brings an upward trend in oil prices, which, should this persist and lead to sustained increases, could challenge the prevailing market consensus that inflation has been vanquished. If so, it might provoke a reevaluation of the Federal Reserve’s role as a one-mandate central bank, with its primary focus on achieving “maximum employment.
— Mohamed A. El-Erian (@elerianm) October 4, 2024
Traders are optimistic on Bitcoin and altcoins
On a optimistic note, the majority of cryptocurrency investors anticipate a favorable performance for Bitcoin and alternative coins during October.
Historically, October and November have been known as the most profitable months for Bitcoin, based on data from CoinGlass.
In a recent observation, a cryptocurrency expert pointed out that the most successful Octobers from recent history typically began amid some initial challenges.
Another possible trigger for Bitcoin and other digital tokens could be the upcoming U.S. presidential election in November. Traditionally, high-value assets tend to prosper following an election, as investors grow accustomed to the economic policies of the newly elected administration.
In a recent survey on Polymarket involving $147,000 participants, about 87% (most) of them anticipate that Bitcoin’s price will reach approximately $65,500 by the end of this month, which is around 7% higher than its current value. Some other respondents predict that it could even go up to $70,000 this month.
If Bitcoin recovers, it’s likely that other cryptocurrencies such as Solana, Ethereum, and even Solana will see increased growth. Moreover, the resurgence of Bitcoin could stimulate further growth within the meme coin market as well.
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2024-10-04 16:38