The United States will see a series of employment and manufacturing data this week, and markets are using this to judge the next move in interest rates by the Federal Reserve. For crypto assets, this means that Bitcoin, Ethereum, and XRP may enter a more volatile phase in the short term, with the U.S. non-farm payroll report released on Friday being seen as the most critical data point.
Currently, Bitcoin is trading at $78,796.58, up 1.7% in the past 7 days; Ethereum is at $2,478.28, up 0.7% in the same period; XRP is at $1.40, up 7.7% in the past 7 days. In addition, Solana has risen by 12.0% in the past 7 days, while BNB has remained relatively stable.
Intensive data releases this week
According to The Kobeissi Letter, a total of 6 major U.S. economic data releases are scheduled for this week, with the focus still on the performance of the labor market.
- Monday: August Chicago PMI
- Tuesday: ISM of August for manufacturing PMI, price data, as well as job vacancies for JOLTS in July.
- Wednesday to Friday: ADP, ISM Non-manufacturing and Non-farm Employment Reports
The reason why the market pays such close attention to employment data is that this type of data directly affects the Federal Reserve's judgment at its next FOMC meeting. If the labor market continues to show resilience, market expectations for interest rate cuts may further cool down, and the pressure on risk assets could also extend to the crypto market.
Bitcoin is still operating within the range.
From the current trend, Bitcoin is still in a range-bound oscillation, with support areas roughly between $73,000 and $75,000, and resistance areas between $80,000 and $82,000. The article mentions that if the price can further exceed $82,500, it may be considered as confirmation of a larger upward trend.
At the same time, the range of $76,400 to $76,700 is considered a relatively concentrated area for liquidity clearing. If the trend continues to weaken in the short term, this area may first become a testing point for the market.
Ethereum and XRP focus on support levels
Ethereum is currently still above $2,400, and the original breakout structure has not been broken yet. Next, the range of $2,750 to $2,800 is considered the main resistance zone.
XRP will then return to the range of $1.30 to $1.40 to test support, as the price previously encountered resistance and fell back near $1.60 to $1.70. The article suggests that this decline is more like a cooling down after overheating in the earlier period and does not necessarily mean that a larger trend has reversed.
Overall, the employment and manufacturing data released from Monday to Friday may continue to increase the market's sensitivity to interest rate trends. If the non-farm payroll data on Friday is significantly strong, market expectations for the Federal Reserve to maintain a tight policy stance may rise; if the data is weaker, a new direction may emerge in the recent volatile market pattern.
