Crypto Fundamental Analysis: Strong NFP Data Fails to Sustain Crypto Market Confidence

As September gets underway, the week has delivered a mixed backdrop for confidence across the cryptocurrency market. At the beginning of the week, demand showed signs of recovering; however, that momentum began to fade toward the end of the period following the release of the U.S. NFP report. The possibility of a more aggressive Federal Reserve has started to affect confidence around risk assets such as cryptocurrencies and has once again given way to a more balanced market environment. As long as this situation remains relevant, a phase of indecision could continue to play an important role in market activity over the coming sessions.

NFP Fails to Sustain Confidence

The final trading session of the week was particularly important due to the release of the U.S. Non-Farm Payrolls (NFP) report, which measures changes in employment during August. Although markets were expecting around 55,000 new jobs, the official figure surprised to the upside, showing the creation of more than 160,000 jobs during the month.

This reading reflects a significant recovery in the labor market, which had shown considerably weaker performance during June and July. In fact, the latest figure returns employment growth to levels not seen since March and reinforces the perception that the slowdown observed in previous months may not have been as pronounced as initially expected.