Bitcoin, Ether Remain Subdued as Markets Process Underwhelming US Economic Data

According to The Block: Bitcoin continues to trade below $55,000, and Ether is struggling to break $2,300 after disappointing U.S. non-farm payroll (NFP) data. The crypto market remains cautious, awaiting further economic indicators and political developments later this week.Currently, Bitcoin is trading at $54,744, up 0.64% in the last 24 hours, while Ether has increased slightly by 0.17% to $2,291. These minor gains come after Friday’s release of NFP data, which showed U.S. job growth at 142,000 in August, below expectations of 160,000.Impact of the U.S. Economic DataThe NFP figures are a critical measure of the U.S. economy’s employment and inflation status, influencing market sentiment across various sectors. Augustine Fan, Head of Insights at SOFA.org, commented that the data hurt crypto markets. He noted, “Crypto would need a near-perfect mix of NFP outcomes to see higher prices. Instead, we received one of the worst-case outcomes as the repricing of risk sentiment dragged BTC and ETH down.”On the same day, Bitcoin briefly dropped to lows of $52,850, and Ether dipped to $2,160. While the U.S. unemployment rate fell to 4.2%, helping to ease concerns about an imminent recession, the weaker payroll data weighed more heavily on investor sentiment.Looking Ahead: Key Events to WatchWith more U.S. inflation data expected this week and the first presidential debate between Donald Trump and Kamala Harris, volatility is likely to continue in the crypto market. Metalpha's senior analyst, Lucy Hu, explained, “The coming week might see more risk reduction with a lack of positive catalysts on the horizon.”Additionally, the U.S. Federal Reserve's next meeting, scheduled for Sept. 17-18, will be a significant event, especially as investors await potential changes in interest rates. The release of the U.S. Consumer Price Index (CPI) on Wednesday and the Producer Price Index (PPI) on Thursday will also be closely monitored for further insights into inflation trends.Political Developments and CryptoCryptocurrency has emerged as a key topic in the upcoming U.S. election, though it was notably absent in previous debates between Donald Trump and current President Joe Biden. The first debate between Trump and Harris is expected to touch on economic and financial policies, potentially affecting the crypto market's outlook.For now, Bitcoin and Ether remain under pressure, with markets waiting for clearer economic and political signals before making any significant moves.