U.Today – The cryptocurrency market is bracing for what could be a volatile September as the release of important economic data, especially those related to employment, has a major effect on the performance of digital assets.
There are several important events coming up this month that could have a major impact on the digital asset landscape as well as traditional markets. This week, the main focus will be on employment data, as several reports are scheduled that could impact market sentiment. Fears of an impending economic slowdown are heightened by the latest downward revisions to employment forecasts, which point to a contraction in the labor market.
In the past, there have been many recessions when private sector contributions to employment fell below 40%. The latest data suggest that this threshold is getting closer, making markets nervous. The week begins with Tuesday's ISM manufacturing data, which will shed light on the state of the industrial sector.
JOLT (Job Openings and Labor Turnover Survey) and factory orders data, which provide an overview of the state of the labor market and the strength of the manufacturing industry, are due out on Wednesday. Friday’s nonfarm payrolls (NFP) report is expected to be the main market driver, but Thursday’s jobless claims, Challenger job cuts and ISM services data helped set the stage.
The unemployment rate, average hourly wage participation rate and Friday’s NFP report will be closely monitored for any hint of deviation from forecasts. Any unexpected employment surge, such as stronger-than-expected job growth, could lead to considerable volatility across all asset classes, including cryptocurrencies, given the market’s current pessimistic view on the employment situation.
The implications for digital assets are twofold. On the one hand, an unexpectedly weak labor market could intensify fears of a recession and send people fleeing to safer havens, potentially hurting more volatile assets like cryptocurrencies.
This article was originally published on U.Today
