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- Experts observe that the US economic data calendar this week could position the crypto market in bullish ways.
- Amid the backdrop of this, the overall crypto market cap has surged by 8% in the last 24 hours, with Solana and Cardano leading the top altcoin market.
The crypto market makes a general daily upsurge of 8% to push the total market capitalization to $2.37 trillion after the Central Bank of Japan was rumored to have abandoned rate hike decisions. Solana (SOL), within the period, surged by 5% to hit $167, while Cardano (ADA) added 4% gains to its value. Meanwhile, Bitcoin (BTC) still dominates the broad market with a total share of 57%.
According to our analysts, the current bullish momentum could continue as three important economic events in the US are expected to fuel more growth.
The US Manufacturing PMI
On Thursday, October 24, the US authorities would publish crucial data to provide key insights into the status of the manufacturing sector. Its impact on the general performance of the crypto market has to do with its interest rate sensitivity. Fascinatingly, economists have predicted that this sector could slightly recover, with a reading of 47.5 above the previous reading of 47.3.
Meanwhile, our research shows that any reading below 50 signifies a negative outlook to manufacturers. Out of the last 23 months, this index has been negative 22 times. Once the PMI reading exceeds 50, there could be an expansion in the manufacturing industry and a subsequent growth in crypto interest as a hedge against inflation.
US Unemployment Claim
According to the Statista Research Department, the US national unemployment rate reached 4.1% in September 2024. In October, this level has been quite explosive, reaching a level last recorded in August 2023. In the week ending October 12, the Initial claims for state unemployment benefits reduced by 19,000 to 241,000. This falls short of the median forecast of 250,000 on MarketWatch, and slightly below the 245,000 consensus estimate by economists.
Subjecting this to analysis, crypto analysts explained that a higher-than-expected unemployment figure could have affected sentiment toward rate cuts by the Federal Reserve. This implies that the lower claim indicates a strengthening economy, and would boost investors’ confidence and cause a spike in demand for riskier assets like Bitcoin.
US Services PMI
According to analysts, the Services Purchasing Managers’ Index (PMI), which would provide insight into the overall performance of the services sector, is expected to decline slightly to 55 from 55.2. A positive sentiment could increase demand for Bitcoin and subject the broad market to a significant rally. For the Managing Partner at Sethi Associate Neil Sethi, these light releases could trigger volatility in the immediate weeks and push the market in favor of investors.
Do note, what this week lacks in key reports next week makes up for and then some. We will get all of the key October employment reports, including the first read on Q3 GDP & ECI (plus Sept personal income and spending with PCE prices). This is on top of most of the Magnificent 7 earnings, the Treasury borrowing announcement, etc. So take full advantage of the light week.
