Prepare for Market Turbulence as US Jobs Report Approaches

By Omkar Godbole (All times ET unless stated otherwise) Cryptocurrency traders should anticipate potential market fluctuations as the highly anticipated US nonfarm payroll report for November is scheduled for release later today, accompanied by October retail sales data. This employment data will provide deeper insights into the cooling of the US labor market, thereby influencing expectations for the Federal Reserve's future interest rate adjustments. According to Linh Tran, a senior market analyst at XS.com, "A weaker-than-expected nonfarm payroll report could reinforce the notion that the US economy is slowing down more significantly, potentially leading to increased expectations for more aggressive monetary policy easing." Lower interest rates could lead to a revival in risk-taking, possibly resulting in a rebound in bitcoin and the broader cryptocurrency market, especially given the current pessimistic market sentiment, which may lead to higher pain trades for participants. As the release approaches, scheduled for 8:30 a.m., the digital asset market is holding onto Monday's losses, with the total market capitalization steady at around $3 trillion and bitcoin trading near $86,400, down nearly 4% over the past 24 hours. The CoinDesk 20 and CoinDesk 80 indexes have both declined by more than 5%, and the CoinDesk bitcoin trend indicator is suggesting a significant downtrend for the fourth consecutive day. The one-day implied volatility index for BTC by Volmex remains within the annualized range of 40%-60%, indicating that the market does not anticipate extreme price movements in the next 24 hours. Bitcoin has been impacted by weaker demand from institutional investors for alternative investment vehicles. On Monday, US-listed spot ETFs experienced a net outflow of $357 million, the highest since November 20. Furthermore, the growth of stablecoins has slowed down significantly, signaling a decrease in new fiat inflows into the cryptocurrency market. Crypto financial services platform Matrixport stated, "Even if absolute growth remains respectable, the deceleration in stablecoin growth rates points to a less bullish liquidity environment for cryptocurrency markets than many had anticipated." The delay in the US crypto market structure bill may be contributing to the bearish sentiment in the market. In traditional markets, the Chinese yuan has reached a two-month high of 7.0417 per dollar. Historically, crypto bulls have associated a weak yuan with increased capital outflows from China into cryptocurrencies, suggesting that a strong yuan may have the opposite effect, although there is limited evidence of direct links between the two assets. However, a sustained yuan rally could lead to a decline in the dollar index (DXY), potentially creating a favorable environment for risky assets, including BTC. Meanwhile, the price of gold has stalled, retreating to $4,277 an ounce from $4,350 on Monday, just shy of the record price of $4,381.48 set on October 20. The US 10-year Treasury yield remains above 4% despite last week's Fed rate cut. Stay alert! Read more: For analysis of today's activity in altcoins and derivatives, see CryptoMarkets Today. What to Watch: For a comprehensive list of events this week, see CoinDesk's "Crypto Week Ahead". Token Events: For a comprehensive list of events this week, see CoinDesk's "Crypto Week Ahead". Conferences: For a comprehensive list of events this week, see CoinDesk's "Crypto Week Ahead". Market Movements: Bitcoin Stats: Technical Analysis: Crypto Equities: Crypto Treasury Companies: ETF Flows: Spot BTC ETFs: Spot ETH ETFs: Source: Farside Investors While You Were Sleeping