Cryptocurrency markets began the week on a positive note, with most leading coins recording slight recoveries after last week’s fall. Early Monday market action on Asian exchanges saw Bitcoin, Ethereum, and many other altcoins drifting marginally higher, even though most traders preferred to stay on the sidelines before a set of U.S. labor market updates.
These reports would effectively shape expectations for future interest rate decisions of the Fed, with the meeting dates of the Fed in October and December now being looked at.
Bitcoin and Ethereum See Early Strength
Bitcoin moved above $112,000 in Monday’s early hours before pulling back slightly to $111,640. The modest recovery follows a dip to below $109,000 late last week. According to CoinGecko, Bitcoin’s price rose around 2% over the past 24 hours.
Ethereum, too, brushed highs near $4,140 before resuming a slight reverse. The asset saw a gain of 2.5% against its weekend levels. Resistance was mounting against the early strength, and price movements are still held hostage to sentiment within the broader parallel.
Total crypto market capitalization has reached near $3.95 trillion and still lags a little below $4 trillion that was recorded earlier this month. Volumes have risen a little; however, they are still subdued as against volumes across previous rallies.
Altcoins Rebound, Led by Hyperliquid’s HYPE Token
Altcoins followed the same trend, with many showing moderate price increases after last week’s sell-off. Hyperliquid’s HYPE token rose 7% in 24 hours, trading near $48 with strong daily volume. The surge appears to be linked to ongoing demand in NFT markets tied to the Hyperliquid platform.
Ripple’s XRP rose by 4%, trading around $2.90. Binance Coin (BNB) crossed the $1,000 level again, up 4.4% on the day. Other large-cap altcoins like Solana, Avalanche, and Cardano also recorded gains but remain well below their monthly highs.
Only a few top-100 tokens, such as TRON (TRX) and Plasma (XPL), saw minor declines. Bitcoin continues to hold a market dominance of 56.4%, while Ethereum stays in second place with a growing lead over the rest of the market.
Labor Market Data Expected to Steer Market Sentiment
U.S. labor market reports are now hitting center stage this week. They will determine whether the Federal Reserve maintains the current stance on interest rates through the start of the fourth quarter.
Opening vacancies and consumer confidence reports are due Tuesday, while the ISM Manufacturing PMI and ADP private sector employment reports measuring private-sector hiring and business conditions, come into play on Wednesday.
Thursday, jobless claims shall be released, with Friday’s labor statistics covering job creation and with it, the overall jobless level, i.e., for September. These numbers have always found use in weighing the economy and adjusting policy if necessary by politicians.
Fed Vice Chair Michelle Bowman commented last week that labor conditions may be weakening, stating:
“Recent data show a materially more fragile labor market along with inflation that, excluding tariffs, has continued to hover not far above our target.”
Macro researcher ‘Capital Flows’ also noted:
“The labor market prints this week will begin to show us if the curve is going to steepen from here or if the Fed is really going to throw real rates even lower.”
These comments have added weight to the week’s economic updates, which could affect both traditional and crypto markets.
October Outlook and Fed’s Next Move
October has historically been a positive month for digital assets. While past performance is not a guarantee, traders often refer to the period as “Uptober” based on trends seen in recent years. Early price action this week may be influenced by that sentiment, though macro data remains the main driver.
The Federal Reserve’s upcoming meetings in October and December are now key for market participants. Last week’s Core PCE inflation reading came in as expected, strengthening the view that interest rate cuts may still be possible if labor data softens.
The Kobeissi Letter commented:
Crypto prices are likely to stay sensitive to the tone of incoming reports. A soft labor report could raise expectations for policy easing, supporting crypto and equities. Strong numbers may delay such moves, potentially weighing on risk assets in the short term.
