The crypto market will be in the spotlight this week, with major data points and keynotes scheduled. Expectations markets will look to see how economic data develops to ultimately assess what the Fed's interest rate trajectory will ultimately be.
Of all the data points, the top three data points that the market focuses on are:
Fed official lecture
Market expectations are currently high regarding an interest rate cut by the US Federal Reserve (Fed). A number of Fed officials are scheduled to speak this week, and investors will be watching all of them closely. The possibility of a sooner-than-expected rate cut has sent shockwaves through the market, and the data supports and confirms the Fed's view. Investors have historically relied heavily on the Federal Reserve's interest rate choices when valuing assets. Lower interest rates often cause government bonds to lose value, which makes other assets like Bitcoin more attractive. If interest rate cuts happen soon, the crypto market will benefit from increased risk appetite and strong purchasing power.
Payroll calculation for non-agricultural sectors
Mr. Powell and his colleagues have said they would like to see a more balanced supply and demand balance in the labor market, and last February's jobs report suggested that would happen soon. . Some investors believe that inflation is not very likely to rise again and that the U.S. economy is stable until more growth is possible. This is evidenced by slowing employment and income growth. To support this hypothesis, future US non-farm employment data will be important.
Number of initial unemployment claims
February's US jobs report showed that even though the unemployment rate was higher than expected, a higher proportion of Americans were not working in the formal income sector. This means that many people may have less purchasing power, indicating a lower risk orientation. Day traders may find their purchasing power reduced due to high unemployment. Therefore, this week's unemployment claims data is critical to accessing the purchasing power of crypto investors.
