As we delve into September, the cryptocurrency market’s performance has been less than stellar. The recent rhetoric surrounding new sanctions by Trump and legal confrontations involving Fed member Cook have further fueled the negative sentiment. Questions loom about the trajectory of Exchange Traded Fund (ETF) flows and market expectations for today and tomorrow.
Current Status of Cryptocurrencies
On September 3rd, Bitcoin 
$91,081 ETF investments persisted, clearing the negativity that cloaked Friday’s market. Even though institutional demand remains robust, boosting investor motivation, Bitcoin finds itself below its crucial $112,500 support level, with the $108,000 support serving as another motivational pillar against further declines.
The loss of momentum in Bitcoin is evident, and considering September’s historical performance, the ongoing weakness comes as no surprise. Investors appear to exercise increased caution towards altcoins, with many cryptocurrencies experiencing a 1-3% daily loss.
While the negative flow in Ethereum 
$3,094 ETF has weakened, a complete reversal has yet to occur. Yesterday saw a net outflow of $38.2 million, signaling reduced interest. Ethereum’s persistent closure below the pivotal $4,600 mark is influencing the entire altcoin market, especially amidst broader macroeconomic developments.
Focusing on the brighter side for Ethereum and altcoins, despite hundreds of millions of dollars in ETF inflows, cumulative daily outflows remaining below $200 million are relatively manageable. Furthermore, declining outflow rates could bolster recovery trends.
Crypto News and Market Reactions
Today’s market awaits the arrival of the ADP Employment Change and PMI data. Yesterday, JOLTS Employment figures corroborated the softening in employment. Statements from Fed members have spotlighted this employment softening, making a September rate cut widely anticipated. Tomorrow’s employment figures are pivotal in shaping the Fed’s rate-cut strategies.
The expectation for Non-Farm Employment is around 75,000, a stark contrast from the previously higher projections, which have been retrospectively revised downwards to 150,000. Unemployment rates, NFP, and average earnings data, due before the U.S. markets open tomorrow, are poised to escalate market volatility.
Should the data meet expectations (ADP’s release being a prelude), there is potential for cryptocurrency markets to rally, buoyed by reinforced rate cut expectations. However, ongoing controversies around Cook’s potential ousting and the independence of the Fed, exacerbated by Trump’s maneuvers, cast a shadow over the markets, preventing a more optimistic narrative.
