Cryptocurrency Market October 7 CHK: Altcoins and US stocks drop as investors await jobs report data

Altcoins and US stocks continued to hold their breath waiting for the jobs report data, BNB fell deeply when the cross chain bridge was attacked by hackers, losing nearly 600 million USD.

Cryptocurrency Market

Data from TradingView shows that Bitcoin price bounced off a local low of $19,911 in yesterday’s trading session. The BTC/USDT trading pair has reversed previous losses, leaving short positions with $20 million in liquidation over the past 24 hours. However, after establishing a local top at $20,450, BTC turned sharply lower, closing daily just below the $20,000 threshold and is currently still trying to hold the price around this area. Bitcoin price is currently trading around $19,950 with 24-hour volume plummeting 19% and reaching only $29.2 billion.

KOL trader Michaël van de Poppe commented:

“The real correction is happening, the $19,800 to $19,900 zone will be an area where people can go long, but that still doesn’t rule out a retest of $19,600.”

Meanwhile, another well-known trader, Il Capo of Crypto, reiterated his thesis about the near-term crypto market outlook. Capo argues that BTC/USD will continue to rise further by 3 – 6% before being rejected, causing the market to fall below its recent trading range.

With Bitcoin struggling to hold onto the $20,000 support, the altcoin market is also showing bearish signals. Altcoin leading the market, Ethereum after peaking at $1,376 yesterday, today bottomed at $1,350 with a 24-hour trading volume of only $10.8 billion.

Most of the projects in the top 100 by market capitalization recorded a slight decline, led by Helium (HNT) when it lost nearly 10% of its value in the past 24 hours. Other major altcoins like, UNUS SED LEO (LEO), ApeCoin (APE), Synthetix (SNX), NEAR Protocol (NEAR), Bitcoin Cash (BCH)… lost around 5% on the day. BNB after the hacker attack and the loss of nearly 600 million USD immediately had a strong downward momentum. Currently, the Binance token is at $284, down 4% from yesterday.

Market sentiment has returned to a general calm. The Greed and Fear Index (FGI) has turned down to 23 points and is located in the Extreme Fear zone.

Macro factors

The US stock market fell in the session on Thursday (October 6), when the dollar exchange rate and US Treasury bond yields both increased because of the US Federal Reserve (Fed) officials’ announcement. sign of not moving away from drastic monetary policy tightening any time soon. Investors’ mood also turned more cautious ahead of Friday’s September jobs report.

Crude oil prices continued to go up after the decision to cut production sharply that OPEC + made on Wednesday.

Stock prices on Wall Street struggled throughout the session, eventually closing in the red. Speaking on Thursday, several Fed officials emphasized that interest rates need to be raised further until inflation is brought under control.

At the close, the Dow Jones index fell 1.15%, to 29,926.94 points. The S&P 500 index slipped 1.02%, to 3,744.52 points. The Nasdaq index fell 0.68% to 11,073.31 points.

Red also dominated the global stock market this session, with the MSCI All Country World Index down 0.85%.

Investors are waiting for the jobs report expected to be released by the US Department of Labor on Friday to determine if the past consecutive interest rate hikes have had the effect of cooling inflation and slowing the economy. The economy weakens enough for prices to slow down. Economic data released so far this week shows a conflicting picture; Some indicate a weakening of the labor market, while others reflect still active recruitment activity.

For their part, Fed officials are still making statements that extinguish any glimmer of hope that the central bank is preparing to delay the rate hike.

Speaking on Thursday, Fed Governor Lisa Cook, Chicago Fed President Charles Evans, and Minneapolis Fed President Neel Kashkari all emphasized the view that the fight against inflation is still ongoing and that they are not ready. change stance.

In contrast to equities, both the dollar and US Treasury yields rose.

The Dollar Index, which measures the strength of the dollar against a basket of six other major currencies, gained nearly 1% to close at 112.2 points. Yields on 10-year US Treasuries rose 6.3 basis points to over 3.8%.

“The rise in bond yields is putting downward pressure on equities and also pushing up the dollar,” said David Madden, an analyst at Equiti Capital. “In recent weeks, the greenback has taken on the role of a safe-haven investment. It is the decline in the price of stocks that is also a driving force for the USD to appreciate.”

Weekly data from the U.S. Labor Department on Thursday showed initial jobless claims for the week ended Oct. 1 were 219,000, beating analysts’ forecasts of 203,000.

“The job market is still strong but has started to weaken. The unemployment rate will inched up and then wage growth will slow, absorbing inflationary pressure in the US economy, “said Comerica Bank chief economist Bill Adams.

In the short term, the market outlook is further complicated by the inflation report due next week. According to forecasts, the US consumer price index (CPI) will have a third consecutive month of deceleration in September, up 8.1%, but this is still the highest level of inflation in the country since the middle of the decade. 1980.

OPEC+’s decision to reduce the output quota of 2 million barrels per day (bpd) on Wednesday continued to support oil prices, sending the price of “black gold” up for the fourth consecutive session.

At the close of trading on the London market, Brent crude oil price increased 1.1%, closing at 94.42 USD/barrel. WTI oil futures in New York rose 0.8 percent, closing at $88.45 per barrel.

OPEC+ is an alliance between the Organization of the Petroleum Exporting Countries (OPEC) and a number of non-OPEC members including Russia.

Spot gold price in the Asian market at more than 10 a.m. Vietnam time stood at $1,712.5/oz, down $1.30/oz compared to last night’s closing price in New York. This price is equivalent to about 49.6 million VND/tael.

In the US session on Thursday, spot gold price fell $3.6/oz, or 0.2%, to close at $1,713.8/oz.

After several consecutive falling sessions, the USD gained again in two sessions on Wednesday and Thursday. Yields on US Treasuries also rebounded, and gold was again under double devaluation pressure from these two factors.

On Thursday in New York, the Dollar Index, which measures the strength of the dollar against a basket of six other major currencies, gained nearly 1% to close at 112.2 points. Yields on 10-year US Treasuries rose 6.3 basis points to over 3.8%.

Speaking on the same day, the US Federal Reserve (Fed) officials continued to show a tough monetary policy stance. That toughening encouraged the dollar to appreciate and push up US Treasury yields, while also putting downward pressure on gold.