Overnight, Bitcoin reached a low of $59.8k, down from $66k just three days ago. With Bitcoin now trading slightly above $60k, all eyes are on the U.S. monthly unemployment rate data, set to be released at 10:30 pm AEST tonight, which could impact Bitcoin and other markets.
The U.S. unemployment rate can have an indirect but significant impact on Bitcoin, as both Bitcoin and traditional markets are influenced by U.S. economic data. The effects are often tied to broader economic conditions, market sentiment, and monetary policy. With the current unemployment rate at 4.2% and no change forecasted, here’s what to expect for Bitcoin from each potential scenario:
The U.S. unemployment rate can have an indirect but significant impact on Bitcoin, as both Bitcoin and traditional markets are influenced by U.S. economic data. The effects are often tied to broader economic conditions, market sentiment, and monetary policy. With the current unemployment rate at 4.2% and no change forecasted, here’s what to expect for Bitcoin from each potential scenario:
1. No change: If the unemployment rate stays steady as forecasted, it is unlikely to have a major effect on Bitcoin or other risk assets. Bitcoin may remain in its current downtrend, with little shift in market sentiment.
2. Rising unemployment: An increase in unemployment typically signals economic weakness, leading to lower risk appetite among investors. Bitcoin could fall further as investors shift to safer assets such as Gold or the U.S. Dollar. BTC will likely drop below $60k.
3. Falling unemployment: While lower unemployment signals economic strength, this could lead to a rally in risk assets. It may be the catalyst Bitcoin needs to reverse its current trend and turn bullish again.
While unemployment data is likely to have an immediate influence on risk assets, it also impacts the U.S. Federal Reserve's interest rate decisions. When unemployment rises, the Fed may cut rates to encourage borrowing and stimulate growth. Conversely, a lower unemployment figure may prompt rate hikes to control inflation and prevent the economy from overheating.
Stormrake Spotlight: Solana ($137)
Stormrake Spotlight: Solana ($137)
We’re shifting focus from Fantom to Solana. Like Bitcoin, SOL has been trading in a wide range since March, with support around $125 and resistance between $160-$170. If Bitcoin continues to decline, SOL is likely to approach the $125 mark, which has historically been a key buying level. This presents a potential opportunity to pick up SOL, not just as a short to medium play, but many believe SOL could one day overtake Ethereum as the second-largest cryptocurrency. Time will tell.
BTC/USD Key Levels and Price Action:
BTC/USD Key Levels and Price Action:
Bitcoin continues to find support at the $60.1k level, though this support has been tested four times, making it weaker. BTC struggles to gain bullish momentum and is consistently halted by the 21 EMA. The downside target remains $57.7k. There should be no talk of upside until BTC can clear its moving averages and middle CPR lines.
BTC Total ETF Flows for 3 Oct: $ - 55.4 million
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
ETH/USD Key Levels and Price Action:
ETH/USD Key Levels and Price Action:
Ethereum continues to show weakness, having failed to break above the 21 EMA and now approaching the first CPR support line at $2,260. ETH shows no bullish signs in the near term and will likely continue to struggle if Bitcoin declines further.
ETH Total ETF Flows for 3 Oct: $ - 14.7 million
(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)
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Written by Alexandar Artis
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