This week presents a series of significant macro-economic events poised to inject volatility into the cryptocurrency markets. Investors and traders are closely monitoring these developments as they have the potential to shape the much-anticipated bullish trends in the crypto sector. Here, we delve into key US economic events that could significantly sway the market dynamics.
Nonfarm Payrolls (NFP)
The Nonfarm Payrolls (NFP) report stands as a pivotal highlight in this week’s economic calendar. Released on the first Friday of each month, this report provides a comprehensive measure of the employment situation in the United States. It specifically tracks the number of jobs added in the previous month, excluding farm employees, government employees, private household employees, and those working for nonprofit organizations.
The US Department of Labor is set to release its October report on Friday, November 1. This report could catalyze significant movements within the financial markets. Economists anticipate that the labor market may have experienced another setback due to the impacts of Hurricanes Helene and Milton. These natural disasters are estimated to have reduced payrolls by up to 40,000 jobs in October.
Economists predict an increase of 125,000 jobs in the nonfarm payrolls for this month, following a surge of 254,000 in September. The unemployment rate is expected to remain steady at 4.1%. If the report falls short of expectations, it may raise concerns about economic stability, prompting investors to explore alternative investment avenues like cryptocurrencies. Conversely, a robust report highlighting strong job growth could enhance consumer spending, thereby accelerating economic expansion and heightening demand for digital assets.
Gross Domestic Product Q3 2024
The release of the Gross Domestic Product (GDP) report for the third quarter of the year is eagerly anticipated. The Commerce Department’s Census Bureau is scheduled to unveil this report on Wednesday, October 30. Current forecasts predict a median growth rate of 3.2%, following a 3.0% growth rate in the second quarter. Should the GDP fall short of this anticipated growth rate, it may signal an economic cooling, potentially altering investor sentiment and driving increased demand for Bitcoin and other cryptocurrencies.
US Elections
As the US presidential election looms just over a week away, its implications for the crypto market are generating considerable attention. Republican nominee Donald Trump has vowed to terminate the “enforcement action” against the cryptocurrency industry, a promise that resonates with key industry stakeholders. According to Polymarket data, Trump is leading in popular bet metrics, boasting a 66% advantage over Kamala Harris, the Democratic contender, who holds 34.1%.
Despite the electoral buzz, some crypto insiders, including Cardano’s Charles Hoskinson, have downplayed the potential impact of the elections on the crypto markets. Nonetheless, the outcome of the elections remains a crucial factor that could influence crypto market trends.
Key Mega Cap Earnings
This week also marks the release of earnings reports from major mega-cap companies, which are expected to have a considerable influence on investor decisions within the crypto market. The earnings reports are slated for release on the following dates:
- October 29: Alphabet
- October 30: Microsoft and Meta
- October 31: Amazon and Apple
In addition to these tech giants, reports from other significant companies, including Visa (V), Starbucks (SBUX), Merck (MRK), AMD, and Intel (INTC), will also be closely monitored. These earnings reports could play a decisive role in shaping market sentiment and guiding investor strategies within the cryptocurrency domain.
