The cryptocurrency market experienced a period of sideways trading on Thursday, as investors eagerly awaited key employment data releases for insights into the health of the global economy. Bitcoin, the leading cryptocurrency, fluctuated around the $60,000 mark for much of the day, ultimately closing above $61,200 following an overnight surge. Ethereum, the second-largest cryptocurrency, also saw similar price movements, hovering around the $2,300 region without breaking through the $2,400 barrier.
Sentiment within the market has been subdued since Iran’s missile attack against Israel on Tuesday, causing both Bitcoin and Ether to experience significant corrections. Bitcoin fell by 4.5% and Ether dropped by 9.11% since the incident. Liquidations continued to weigh on the market, with over $192 million erased from the derivatives market in the past 24 hours, with 74% of the total representing upside bets. Despite the price drop, Bitcoin’s Open Interest increased by 0.85% in the last 24 hours, suggesting the possibility of new short positions being opened. The coin’s Long/Short Ratio also surged to 1.09, indicating a greater number of traders holding bullish bets compared to those anticipating price declines. The Cryptocurrency Fear & Greed Index moved slightly higher from 37 to 41, although the prevailing sentiment remained one of “Fear.”
Despite the overall market uncertainty, some cryptocurrencies saw notable gains. Aptos (APT) led the pack with a 7.36% increase, followed by Monero (XMR) at 4.81% and Stacks (STX) at 4.20%. The global cryptocurrency market capitalization stood at $2.12 trillion in the last 24 hours, experiencing a slight decline of 0.36%.
Meanwhile, the stock market also saw a decline on Thursday. The Dow Jones Industrial Average lost 184.93 points (0.44%), closing at 42,011.59. The S&P 500 slid 0.17% to finish at 5,699.9. The tech-heavy Nasdaq Composite closed 0.04% lower at 17,918.48. The Dow and S&P 500 faced pressure this week, dropping by 7% as geopolitical tensions in the Middle East escalated. Investors also weighed the impact of higher-than-expected weekly jobless claims data for the week ending September 28.
Attention is now focused on the nonfarm payrolls data, scheduled for release on Friday, which is expected to provide a clearer picture of the labor market and the state of the economy.
Prominent cryptocurrency analyst Ali Martinez highlighted $60,365 as a crucial level to watch for Bitcoin. “If BTC breaks below this, we could see a dip to $57,420. But if BTC holds, a rebound to $63,300 is on the table,” Martinez commented.
Another respected cryptocurrency analyst, Michaël van de Poppe, suggested that Bitcoin’s correction in the first week of October is “relatively standard” due to the release of unemployment numbers. “We expect to reverse from next week, through which dips are for buying!” he predicted.
With the cryptocurrency market currently navigating a period of uncertainty, the upcoming employment data releases and the ongoing geopolitical tensions will likely play a significant role in shaping the market’s future direction in the coming weeks.
