Analysis: Employment News Dampens Sentiment in Crypto Market
CryptoNewsTerminal Staff07 Sep, 2024
Analysis: Employment News Dampens Sentiment in Crypto Market
Singapore-based cryptocurrency trading firm QCP Capital recently shared their insights on the impact of the US non-farm employment report for August on the cryptocurrency market. The report came in weaker than expected, showing an unemployment rate of 4.2%. Initially, the market reacted positively, seeing a brief rally in risk assets including cryptocurrencies. However, the sentiment quickly turned bearish as the probability of a 50-basis-point rate cut in September diminished. Furthermore, the cryptocurrency options market has seen continued large-scale put selling, indicating a pessimistic outlook among traders. These developments suggest that the crypto market's recent rally may have been premature and that further downward pressure could be on the horizon. Traders should proceed with caution and monitor the market closely for any further developments.
