Crypto Market Eyes US Job Data, But Focus Shifts to Inflation Figures
The crypto market has been treading cautiously ahead of major economic data releases in the coming days. The US job data, scheduled for this week, is closely watched by investors, who are also keeping a close eye on the US CPI and PPI inflation data next week.
JPMorgan believes that while the US nonfarm payroll data will provide some insights, it's the US CPI that will further cement bets on the next move of the central bank. The bank forecasts monthly US job creation between 30,000 and 70,000 as the 'sweet spot' for the upcoming payrolls data.
If hiring comes in significantly stronger than this range, markets could interpret the data as a sign that the US economy remains resilient despite higher inflation. This scenario could weigh on risk assets, including cryptocurrencies, as it would give more space to the US Fed for a rate hike.