Reasons Why This Week Will Be Unstable for the Crypto Market
The cryptocurrency market entered the final week of September in a state of uncertainty due to bearish sentiment and low demand from large investors. Traders expect increased volatility in connection with a series of macroeconomic events.
According to the CoinMarketCap Fear and Greed Index, market sentiment has once again turned anxious, similar to the period before February’s capitulation.
Among the key events expected to impact the crypto market this week, experts highlight the speeches of U.S. Federal Reserve officials. There will be five such speeches in total, and in each one analysts and traders will be looking for hints about the regulator’s next move regarding interest rates. Even small clues about potential rate cuts, inflation forecasts, or changes in liquidity could quickly affect the cryptocurrency market.
Another event anticipated by the crypto community will take place on September 30. On that day, the FTX Recovery Trust will complete its third distribution of funds, paying out $1.6 billion to eligible creditors. Previous payouts triggered sell-offs: after the February 18 tranche, BTC dropped 15% in the following weeks, and after another on May 30, it fell by more than 10%.
In addition, this week will bring key U.S. economic data that will influence the Fed’s next interest rate decision. On Thursday and Friday, unemployment figures will be released, while on Wednesday the manufacturing activity index will be published.
See also: "CoinGecko: 55% of Cryptocurrency Holders Owned Bitcoin in Their Portfolio"
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