Key Takeaways

What triggered the crypto market dump?

Macro uncertainty led to another wave of liquidations.

What are analysts’ projections?

Analysts expect a dip to $107K if the U.S labor market shows signs of resilience. 

Bitcoin [BTC] led the crypto market sell-off with a dip of about 4% after the release of U.S jobless claims data on 25 September. The data revealed a weak U.S labor market, raising hopes for another Fed interest rate cut.  

In fact, the odds for another 25 basis point (bps) rate cut for next month jumped by 2% to 87%. 

However, the Fed’s inflation gauge, the PCE (personal consumption expenditure) index, scheduled for 26 September, could impact the aforementioned odds. 

In an email statement, Jake Kennis, Senior Research Analyst at Nansen, told AMBCrypto that traders should watch any PCE deviation from the 2.7%-2.9% year-on-year target. Kennis added, 

“Higher-than-expected inflation could signal more hawkish Fed policy and risk-off sentiment that typically pressures crypto markets.”

However, a cooler inflation could boost BTC, ETH, and other risk assets as this would allude to potential Fed dovishness.

U.S shutdown fears trigger liquidations

Fears of a U.S government shutdown have also dampened market sentiment, triggering another round of liquidations. 

In fact, as of press time, the U.S Congress had not agreed on a way to fund the government. This could stall most of

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Author: Benjamin Njiri