4 Macro Events Driving Crypto Market Sentiment This Week

Crypto markets will watch several US economic events this week and brace for volatility. Meanwhile, Bitcoin (BTC) remains well above the $67,000 threshold amid ongoing range-bound movement as crypto markets await strong catalysts to enable further upside.

Meanwhile, the countdown to the US election continues. Volatility inspired by select macroeconomic data, coupled with that from US election anticipation, could impart traders’ and investors’ portfolios. This calls for caution and tailored trading strategies.

Four US Economic Data With Crypto Implication

As US economic events and data continue to have crypto implications, traders and investors should monitor these reports this week.

Q3 GDP

The Commerce Department’s Census Bureau will release the third quarter (Q3) Gross Domestic Product (GDP) report on Wednesday, October 30. The median forecast is 3.2% after the Q2 GDP of 3.0%. Nevertheless, based on a usually reliable model from the Atlanta Fed, the economy probably expanded at an annualized pace of 3.3%.

If this happens, it will be nearly twice as high as the median forecast in July at the start of the quarter. Meanwhile, a slowdown in GDP growth would suggest a potential economic cooling, influencing investor sentiment. This change in sentiment could lead to increased interest in Bitcoin and crypto in general as alternative investments.

Read more: How to Protect Yourself From Inflation Using Cryptocurrency

Nonfarm Payrolls

Nonfarm Payrolls (NFP), released on the first Friday of each month, are a key highlight in this week’s US economic events calendar. They measure the employment situation in the US, indicating the number of jobs added from the previous month, excluding farm employees, government employees, private household employees, and NGO employees.

The US Department of Labor will release its October report, which is due on Friday, November 1, and has the potential to cause large movements in the financial market. For starters, the labor market is expected to have taken another hit from Hurricanes Helene and Milton. The catastrophes are estimated to have cut up to 40,000 jobs from payrolls in October.

Against this backdrop, Reuters says economists estimate nonfarm payrolls increased by 125,000 jobs this month after surging by 254,000 in September. The unemployment rate is also seen unchanged at 4.1%.

A weaker-than-expected report might raise concerns about economic stability, leading investors to seek out alternative investment opportunities such as cryptocurrencies. On the other hand, a positive report showing strong job growth could boost consumer spending, fueling economic expansion and increasing demand for digital assets.

Mega-Cap Earnings

Key mega-cap earnings are also on the watchlist among US economic events with crypto implications this week. Specifically, the reports will be released after market close (AMC) on the following schedule:

• October 29, Tuesday: Alphabet (GOOGL), AMC
• October 30, Wednesday: Microsoft (MSFT), Meta (META), AMC
• October 31, Thursday: Amazon (AMZN), Apple (AAPL), AMC

Notably, other companies will also be reported, including Visa (V), Starbucks (SBUX), Merck (MRK), AMD, and Intel (INTC). However, the highlight will be the above five, as focusing on the asset class that is large—or mega-cap growth remains the greatest area of interest for now.

US Elections

It is also worth mentioning that these events come only days before the US election, which adds credence to the expectation of heightened volatility. Based on the US election countdown, the Americans are just over a week away from electing their 47th president.

Polymarket data shows Republican nominee Donald Trump is leading on popular bet metrics, with 66%, against Kamala Harris, the Democratic ticket holder, with 34.1%. Recently, Polymarket articulated that the prediction market remains nonpartisan.

Read more: How Can Blockchain Be Used for Voting in 2024?

With crypto progressively becoming a political concern in the US, given the expansive digital assets voter cohort, traders and investors can also expect volatility as this countdown continues.