- Experts observe that the timing of this week’s US economic data could position the crypto market bullishly.
- Against this backdrop, the overall crypto market capitalization jumped 8% in the last 24 hours, with Solana and Cardano leading the premier altcoin market.
The crypto market is experiencing a general daily upsurge of 8% to push the total market capitalization to $2.37 trillion after the Central Bank of Japan reportedly abandoned its rate hike decisions. Solana (SOL), over the period, jumped 5% to reach $167, while Cardano (ADA) added 4% earnings at its value. Meanwhile, Bitcoin (BTC) still dominates the vast market with a total share of 57%.
According to our analysts, the current upward momentum could continue as three important economic events in the United States are expected to further fuel growth.
The US manufacturing PMI index
On Thursday, October 24, US authorities will release crucial data to provide key information on the situation in the manufacturing sector. Its impact on the general performance of the crypto market is linked to its sensitivity to interest rates. Fascinatingly, economists have predicted that this sector could recover slightly, with a reading of 47.5 above the previous figure of 47.3.
At the same time, our research shows that anything below 50 means a negative outlook for manufacturers. Over the past 23 months, this index has been negative 22 times. Once the PMI rises above 50, there could be an expansion in the manufacturing industry and subsequent growth in interest in crypto as a hedge against inflation.
Applying for unemployment in the United States
According to Statista’s research department, the national unemployment rate in the United States reached 4.1% in September 2024. In October, this level was quite explosive, reaching a level last recorded in August 2023. During the week ending October 12, initial claims for state unemployment benefits reduced by 19,000 to 241,000. This figure is below the median forecast of 250,000 according to MarketWatch, and slightly below from economists’ consensus estimate of 245,000.
Subjecting this to analysis, crypto analysts explained that a higher-than-expected unemployment figure could have affected sentiment towards the Federal Reserve’s rate cuts. This implies that falling demand indicates a strengthening economy, would boost investor confidence, and cause a rise in demand for riskier assets like Bitcoin.
US Services PMI
The Services Purchasing Managers’ Index (PMI), which would provide insight into the overall performance of the services sector, is expected to fall marginally to 55 from 55.2, analysts said. Positive sentiment could increase demand for Bitcoin and subject the entire market to a significant rally. For Neil Sethi, managing partner of Sethi Associate, these soft releases could trigger volatility in the immediate weeks and push the market in favor of investors.
Note that what’s missing this week in next week’s key reports makes up for it and more. We’ll get all the major October jobs reports, including the first reading on third-quarter GDP and ECI (plus September personal income and spending with PCE prices). This is in addition to most of the Magnificent 7 results, the announcement of Treasury borrowing, etc. So take full advantage of the light week.
