The crypto market enters a key week as traders keep an eye on U.S. labor data and broader market direction. Traditional markets are set for several major economic updates between September 1 and 5, which may play a role in short-term crypto price moves.
Jobs Data Ahead of Fed Decision
Markets in the U.S. are closed on Monday for Labor Day, but the rest of the week is filled with updates on the labor market. These are the final employment reports before the Federal Reserve’s policy meeting later in September.
On Tuesday, we have the ISM Manufacturing PMI, which gives an outlook on the factory sector. It is widely used as an early sign of the economic outlook. The rest of the week, investors will watch for the July JOLTS job openings report, ADP employment data, and jobless claims.
The August non-farm payrolls report is due Friday. It will have data on hiring, unemployment, and wages. There is a lot of attention on these numbers in the traditional and digital markets.
Mixed Signals From Economic Growth and Inflation
Last week’s data on inflation and growth gave a steady outlook. The July PCE inflation report came in as expected, with no major changes from the prior month. The second estimate for Q2 GDP was slightly raised to 3.3%, showing better-than-expected growth.
Despite that, views on the economy remain divided. President Donald Trump said Sunday that “prices are way down in the USA with virtually no inflation,” though that view may not match the experience of many consumers. Contrarily, the Kobeissi Letter mentioned the “US cost of living is getting worse,” drawing attention to personal debt levels and spending power.
This discrepancy between data and perception adds a new dimension of ambiguity as the markets try to anticipate the Fed’s next move.
Crypto Market Slides as Correction Deepens
Crypto prices dropped again to start the week, continuing a pattern seen on recent Mondays. Total market cap fell nearly 2%, now sitting close to $3.80 trillion.
Bitcoin led the way lower, falling below $107,500 in early Monday trading. The drop puts it over 13% off its mid-August high and marks its lowest point since early July. Ethereum also fell, slipping under $4,400, though it remains in the same price range seen over the past three weeks.
Altcoins Weaken as Risk Appetite Fades
The broader altcoin market turned red. XRP, Solana, Cardano, Dogecoin, Chainlink, and Sui posted deeper losses. So far, any hopes of a late-year altcoin rally remain unfulfilled, with no clear breakout in sight.
Trading activity remains low, and earnings season wrapped up last week. Nvidia shares pulled back Friday, which added pressure to tech and growth stocks. With U.S. economic data stacked this week, crypto traders are staying cautious.
