Market attention is focused on this week's Powell speech and non farm payroll data, which may affect the trend of cryptocurrency

The cryptocurrency market gave up some of last week's gains in early Asian trading on Monday, as analysts pointed out that the upward momentum of Bitcoin and Ethereum has weakened. Investors are paying attention to the upcoming speech by Federal Reserve Chairman Jerome Powell and the release of US labor market data on Friday, both of which could have an impact on the market.

According to The Block data, the price of Bitcoin (BTC) has dropped by 2.09% in the past 24 hours to around $64403. Last Friday, Bitcoin rose to nearly $66500 after lower than expected personal consumption expenditure (PCE) data was released, the highest level since the end of July. China also announced a series of strong stimulus measures last week to revive the economy.

Rachael Lucas, an analyst at BTC Markets, an Australian cryptocurrency exchange, said, "Bitcoin shows overbought on the daily chart, and its price fell back after hitting a high of $66498 on Friday. Since then, momentum has weakened

Lucas stated that Ethereum is also struggling to regain momentum, as it lost momentum after breaking through the 50 day simple moving average (SMA) last week. According to The Block data, the price of Ethereum (ETH) has fallen 1.69% in the past 24 hours to $2626.

Bauer Speech and NFP

Investors are focusing on two key macroeconomic events this week - the speech by Federal Reserve Chairman Powell at 1:55am Taiwan time on Tuesday at the National Association for Business Economics (NABE), and Friday's non farm payroll data (NFP). It is expected that Powell will discuss the economic outlook and may provide insights on the Federal Reserve's monetary policy.

Ball's comments, especially those about inflation and interest rates, often affect the market, and cryptocurrencies are no exception, "Lucas said." Any hawkish tone could further exacerbate risk aversion, leading to today's decline

However, Augustine Fan, the head of the insights department at SOFA.org, stated that Powell is unlikely to make any statements that will affect the market. "Investors may expect him to make more similar statements based on the content of the last FOMC, especially since his dovish Q&A last time, the recent inflation data has been favorable to him.

The US Department of Labor will release its monthly non farm payroll report this Friday, which provides an overview of the US job market and overall economic strength. Although the August data showed a weak labor market in the United States, Lucas from BTC Markets stated that the market expects an improvement in September's data. "Stronger than expected employment data may consolidate the Federal Reserve's current interest rate orientation, which is potentially beneficial for risk assets, including Bitcoin and Ethereum.

In terms of cryptocurrency prices, SOFA.org's Fan stated in an interview with The Block that the market may remain bullish in the short term, "as cryptocurrency maintains a high correlation with macro assets, especially relative to the SPX (S&P 500 Index), we believe that a favorable macro backdrop will continue to provide strong support for cryptocurrency prices in the fourth quarter. Fan added:

In addition, due to Kamala Harris's campaign rhetoric advocating for 'support' for cryptocurrencies, we remain optimistic about the recent price trend. As investors shift towards a 'buy on dips' model, targeted put selling strategies may be welcomed

data source