A different reaction was felt across the cryptocurrency market after a weaker-than-expected Non-Farm Payroll (NFP) data was released on Friday, September 5. However, the general consensus seems to be that this latest weak job data release could be rather positive in terms of interest rate cuts.
Meanwhile, analysts at investment banking behemoth Goldman Sachs are projecting three 25BPS cuts before the year runs out. The first interest rate cut is expected to occur in September, with two additional cuts anticipated in October and November.
Lower interest rates have always been viewed as a positive macroeconomic indicator for the risk assets, including the crypto market. With fixed-income assets becoming less attractive, investors tend to have a risk-on attitude towards the riskier assets.
According to data from CoinGecko, the total crypto market capitalization stands at around $3.09 trillion, reflecting an over 1% decline in the past day.
