Market sentiment remains fragile as traders await key U.S. economic data that could influence the Federal Reserve’s policy outlook. November’s Non-Farm Payrolls report is expected later this week, followed by CPI inflation data.
The labor market and inflation remain central to the Fed’s rate decisions. Any signs of slowing job growth or easing inflation could strengthen expectations for lower interest rates.
Lower rates would likely support Bitcoin and other cryptocurrencies, as declining yields tend to increase demand for speculative assets. Adding to this, the Fed’s recent repurchases of short-term Treasury bonds have boosted market liquidity, potentially encouraging renewed investment in crypto markets.
