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The cryptocurrency market is riding a wave of volatility as investors eagerly await new US economic data. Recently published data has painted a bleak picture of the economy’s health, adding weight to upcoming macroeconomic statistics. Simultaneously, developments in US-China relations contribute to the uncertainty, as participants try to decipher future market directions amidst these global dynamics.
China’s Recent Statements
Last Friday saw former US President Donald Trump issue harsh remarks about China, accelerating the decline of cryptocurrencies. Yet, China’s response was muted, and it is anticipated that Trump will hold talks with China’s Xi Jinping imminently. Today, China’s Vice President Han Zheng presented a statement that reflected the strained nature of US-China relations. His speech, which followed a high-level dialogue with the US delegation, offered sparse details.
These communications form part of unofficial US-China Track II discussions, where continued dialogue—despite the anticipation of a call between Trump and Xi—offers a glimmer of optimism for the cryptocurrency space. However, specific prospects of the expected call remain unshared.
In normal circumstances, before tariff negotiations escalate, there were talks of Xi visiting the US in June. Time still permits, and any announcement post-discussion might catalyze a swift recovery in cryptocurrencies.
Awaiting US Data on June 6
The US is set to release unemployment rates and non-farm employment figures this Friday. The ADP report, a precursor indicator, recently posted below expectations for non-farm employment, which had reached 177,000 in the previous month. The forecast suggests a decline to 126,000. Should numbers fall short, the Federal Reserve’s stance to maintain interest rates could weaken.
The unemployment rate is projected to remain at last month’s figure of 4.2%. Meanwhile, the average income in the US, after posting at 3.8%, might slightly dip to 3.7% this month.
Capo and Cryptocurrency Predictions
Notable 2022 cryptocurrency analyst Capo is again stirring investor concerns. His recent insights, expressed during the preparation of this article, caution the crypto community ominously.
“We haven’t seen anything yet…”
Capo warns of a scenario where BTC could drop from its current high above 100,000 dollars initially to 93,000 dollars and eventually reach major support levels between 60,000-70,000 dollars as altcoins retreat from their local peaks.
