On Friday, Bitcoin only temporarily rose back above the round mark of 85,000 dollars. However, the streak of profit-taking may have been broken and the associated character test passed. Following the regulatory signals from the US, investors are now increasingly turning their attention back to geopolitical and monetary policy developments, which remain fragile. Hopes for a diplomatic solution in the Iran war could tend to increase risk appetite again.
The fact that large-scale profit-taking has failed to materialize so far speaks in favor of a possible continuation of the recent rally. Investors are currently conducting a fact check and examining the foundations upon which the recent bull market is really built. In the coming trading week, things are likely to get exciting, particularly with new US labor market data. In addition, investors are awaiting new US price data.
Bitcoin
Following regulatory signals from the US – hope for further tailwinds is likely to remain
On Thursday, the US SEC introduced a temporary regulatory framework for the trading of tokenized securities. Investors recently rewarded the advancing integration of blockchain technology and traditional capital market infrastructure.
US price data in focus on Wednesday – job data could provide important monetary policy impulses
Wednesday is likely to get exciting, particularly with new US inflation data. The so-called core rate for personal consumption expenditures is expected in the afternoon (2:30 PM), which serves not least as the US Federal Reserve's preferred measure of inflation.
On October 28, the US Federal Reserve is scheduled to meet next to decide on the future level of the key interest rate. Currently, according to the CME Group's "Fed Watch Tool," 66.4 percent of market participants expect another rate hike totaling a quarter of a percentage point.
On Friday, the official US employment data (Non-Farm Payrolls) are expected to provide important momentum. Economists expect a total increase of 100,000 jobs outside of agriculture for the month of September, following 162,000 new jobs in August. However, the separately determined unemployment rate could rise by 0.1 percentage points to 4.2 percent in this context.
