- BTC retests $66,000 after better-than-expected August inflation data
- U.S. labor market update could set next market direction
Bitcoin [BTC] It rose slightly on Friday to retest $66,000 after a softening reading in the Federal Reserve's favorite inflation data, the core PCE index (personal consumption expenditures). This index tracks U.S. inflation, eliminating noise from food and energy price fluctuations.
The core PCE index in August exceeded expectations, rising 2.6% year-on-year. This was contrary to market expectations of 2.7%.
Speculator prices rose, low inflation statistics boosted market odds The Fed cut interest rates by another 50 bps (basis points) in November.
Source: CME FedWatch
Next market catalyst
The low inflation statistics meant that the Fed would focus on the state of the US labor market, particularly the unemployment rate, as it adjusted the pace of interest rate cuts accordingly.
Therefore, the upcoming US labor sector updates will influence the next market direction, says the famous trading house QCP Capital.
Part of the company's weekend financial results report for September 28th read,
“Looking ahead to next week, upcoming labor market indicators will be in focus, including JOLT, ADP, and the US unemployment rate.”
key update What should be noted is the JOLT (Job Recruitment and Turnover Survey) and the employment situation scheduled for November 1st and 4th. Anticipating the potential market impact of the update, QCP Capital added:
“If these indicators hold strong, it could strengthen the case for a 50bps rate cut in November and further boost risk assets.”
If so, BTC could move further towards $70,000 following recent bullish market structure changes. Especially after it regained its 200-day moving average (moving average).
Source: Daan Crypto/X
Liftoff could also benefit Ethereum [ETH]. In fact, ETH has outperformed BTC since the Fed's policy change.
Therefore, additional macro tailwinds could extend ETH’s impressive recovery on the charts. In fact, according to market analyst Benjamin Cowen, ETH could also rise to the psychological level of $3,000.
Source: Cowen/X
That said, top digital assets have seen renewed demand from US investors. This week, US BTC ETFs received $1.11 billion in inflows, the largest weekly inflow since July 19th.
Similar but limited investor appetite was observed with the ETH ETF. These products had an inflow of $84.6 million, the largest weekly demand since August 9th. If this trend continues, price targets of $3,000 per ETH and $70,000 per BTC could become achievable.
