September Crucial for Cryptocurrency Market: Key Events You Can't Miss
The cryptocurrency market is preparing for what could be a volatile month of September, as important economic data releases, especially those pertaining to employment, have a major effect on the performance of digital assets.
There are several important events coming up this month that could have a major impact on the digital asset landscape as well as traditional markets. This week's main focus will be on employment data as a number of reports that could affect market sentiment are scheduled. Fears of an impending economic slowdown are raised by the latest downward revisions to employment forecasts, which point to a contracting labor market.
Market is likely heavily focused towards employment data this week
forecasts seems to be more towards weakening labour market after the recent downward revision
~ expectation of downward trajectory in employment
so that being said there's probably a higher volatility outcome if… https://t.co/C1HxUXLTq1— Skew Δ (@52kskew) September 2, 2024
A recession has frequently followed in the past, when private sector employment contributions fall below 40%. The latest data suggests that this threshold is getting closer, which has markets nervous. The week begins with the ISM Manufacturing data on Tuesday, which sheds light on the state of the industrial sector.
The JOLTs (Job Openings and Labor Turnover Survey) data and Factory Orders, which provide an overview of the state of the labor market and manufacturing strength, will come right after this on Wednesday. The non-farm payrolls (NFP) report on Friday is anticipated to be the major market mover, but the data on jobless claims, challenger job cuts and ISM services on Thursday helped set the stage.
The unemployment rate, average hourly wage participation rate and Friday's NFP will all be closely watched for any indications of deviance from forecasts. Any unexpected increase in employment such as higher-than-expected job growth could cause considerable volatility in all asset classes, including cryptocurrencies, given the market's current pessimistic view on the employment situation.
The implications for digital assets are twofold. On the one hand, an unexpectedly weak labor market could intensify fears of a recession and cause people to flee to safer havens, which could harm more volatile assets like cryptocurrencies.