Industry experts predict that the US economic data calendar for this week could have a positive impact on the cryptocurrency market. Against this backdrop, the overall market cap of cryptocurrencies has increased by 8% in the past 24 hours, with Solana and Cardano leading the way among alternative coins.
The cryptocurrency market experienced a general daily surge of 8%, pushing the total market capitalization to $2.37 trillion. This increase came after rumors that the Central Bank of Japan had abandoned plans for interest rate hikes. During this period, Solana (SOL) saw a 5% surge, reaching $167, while Cardano (ADA) gained 4% in value. Meanwhile, Bitcoin (BTC) continues to dominate the market with a total share of 57%.
According to analysts, this current bullish momentum is likely to continue due to three important economic events taking place in the US. These events are expected to fuel further growth in the cryptocurrency market.
The first event is the publication of crucial data on the status of the manufacturing sector, known as the US Manufacturing PMI. This data, set to be released on Thursday, October 24, will provide key insights into the performance of the manufacturing sector. Its impact on the cryptocurrency market is tied to its sensitivity to interest rates. Economists predict a slight recovery in this sector, with a reading of 47.5, slightly higher than the previous reading of 47.3. A reading below 50 indicates a negative outlook for manufacturers. If the PMI reading exceeds 50, it could lead to expansion in the manufacturing industry and subsequent growth in crypto interest as a hedge against inflation.
The second event is the US Unemployment Claim. The national unemployment rate in the US reached 4.1% in September 2024, and in October it has risen to a level last recorded in August 2023. In the week ending October 12, initial claims for state unemployment benefits decreased by 19,000 to 241,000, falling short of the median forecast of 250,000. Analysts suggest that a higher-than-expected unemployment figure could impact sentiment towards rate cuts by the Federal Reserve. A lower unemployment claim indicates a strengthening economy, boosting investor confidence and leading to increased demand for riskier assets like Bitcoin.
The third event is the US Services PMI, which provides insight into the overall performance of the services sector. Analysts predict a slight decline in the index from 55.2 to 55. A positive sentiment in this sector could increase demand for Bitcoin and trigger a significant rally in the broader market.
While this week may lack key reports, next week promises to make up for it with important employment reports and other significant announcements. Investors are advised to take full advantage of the current light week and prepare for the upcoming events.