Here are the factors that may determine the course of cryptocurrencies this week

Here are the factors that may determine the course of cryptocurrencies this week Here are the factors that may determine the course of cryptocurrencies this week

The cryptocurrency market opened today, Monday, with limited gains, after a week marked by widespread losses.

However, the recovery appears fragile in light of the anticipation of influential economic data that may determine the direction of the markets in the coming days.

U.S. economic data under the microscope:

The core personal consumption expenditures inflation index matched expectations last week, strengthening bets on further interest rate cuts by the Federal Reserve.

This week, attention is focused on labor market data, starting with job vacancy reports and consumer confidence to be published on Tuesday, followed by the ISM manufacturing index and employment data from ADP on Wednesday, then unemployment claims to be published on Thursday, leading up to the non-farm payroll report expected to be published on Friday.

Macroeconomic researchers believe that the results of this data will determine whether the Fed will move towards larger cuts in real interest rates, which could reflect positively on stocks, gold, silver, and Bitcoin.

In this context, Michelle Bowman, vice president of the Fed, confirmed that the labor market shows increasing fragility, necessitating more decisive actions to avoid exacerbating the slowdown.

Direct impact on the cryptocurrency market:

The total market capitalization of cryptocurrencies increased by 2.2% on Monday morning, reaching $3.95 trillion, in an attempt to recover losses from last week.

The price of Bitcoin quickly returned above the $112,000 level but failed to break the resistance and declined to around $111,640 at the time of writing this article.

Ethereum, in turn, broke the $4140 level after rising by 2.5%, before it started to decline again.

Some alternative cryptocurrencies such as Solana, Cardano, Link, Hyperliquid, and Avalanche showed good short-term performance, although they experienced strong selling pressure during the past week.$BTC $ETH $SOL #CryptoETFMonth #BTCPriceVolatilityNow #BinanceHODLerEDEN