BTC fell along with the US stock market after US inflation data came in slightly higher than expected and the number of weekly jobless claims rose sharply.
Table of Contents
ToggleWeak employment, CPI slightly higher than expected
The US announced that the September consumer price index (CPI) rose 2.4% year-on-year, higher than the market expectation of 2.3%, and the core CPI excluding food and energy costs rose 3.3% year-on-year in September, also higher than the market expectation and the previous value of 3.2%. However, the annual inflation rate still recorded the smallest increase in more than three years, reflecting a broader trend of slowing inflation. Another report showed that the number of weekly jobless claims rose to 258,000 as of October 5, mainly affected by Hurricane Haiyan and the Boeing strike.
Allegiance Gold COO Alex Ebkarian said the consumer price index report did not bring too much surprise, and the employment data showed a weak trend, indicating that the Federal Reserve is likely to cut interest rates.
According to the CME FedWatch tool, the market currently expects an 86.9% chance that the Federal Reserve will cut interest rates by 1 notch next month, and the expectation of a 2-notch rate cut has completely disappeared.
BTC once fell below 59K, the market lacks strong momentum
BTC fell along with the US stock market after US inflation data came in slightly higher than expected and the number of weekly jobless claims rose sharply on Thursday.
BTC fell below 59K last night, a new low since 9/17. Although analysts generally believe the sluggishness is only temporary, and emphasize the close correlation between the performance of cryptocurrencies and the US stock market, and expect the cryptocurrency market to follow the recovery of the stock market.
(BTC once fell below 60K, will the "depreciation trade" make BTC welcome Uptober?)
However, 10x Research believes that BTC has not officially broken through the recent downward trend line, and the current cryptocurrency market lacks sufficient "wind" to keep the ship on course, this "wind" comes from market structure - from trading volume, funding rates to stablecoin minting and ETF liquidity, all-encompassing. Without strong momentum, cryptocurrencies will remain in a narrow trading range. Although it is still too early to give up hope for a fourth-quarter rebound, given the current lack of market momentum, effective risk management is crucial.
