Cryptocurrency markets are starting strong in what has historically been their best-performing quarter, with Bitcoin (BTC) surging nearly 4% to $117,400 within 24 hours.
Crypto prices extended their gains during early U.S. trading as fresh economic indicators reinforced expectations for multiple Federal Reserve rate cuts throughout the year, beginning with September's reduction.
September's ADP employment report revealed the largest private payroll decline in 2.5 years, with companies shedding 32,000 jobs. August's initially reported gain of 54,000 jobs was dramatically revised to a loss of 3,000 positions.
While traders typically focus on the Labor Department's monthly jobs report, its release faces potential delays due to the ongoing government shutdown.
The September ISM Manufacturing PMI remained steady at 49.1, while the Prices Paid index provided encouraging inflation data, dropping to 61.9 from August's 63.7 against forecasts of 63.2.
Equity markets showed modest declines with both Nasdaq and S&P 500 dipping slightly. Gold retreated to $3,888 after hitting a record $3,921 earlier in the session.
Altcoins demonstrated robust performance across the board, with Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) advancing 5%-7% over 24 hours, outperforming Bitcoin's gains.
Despite uncertainty surrounding upcoming economic data, market participants overwhelmingly anticipate further Fed rate cuts in October. The CME FedWatch Tool indicates a 99% probability of a 25 basis point reduction, up from 92% just one week ago.
Strong October Opening
While September has traditionally been challenging for cryptocurrencies, Bitcoin recorded one of its best September performances in years with approximately 6% monthly gains.
The final two September days saw spot Bitcoin ETFs attract $950 million in inflows, completely reversing the previous week's $900 million outflows.
"The upcoming quarter likely marks the beginning of the crypto bull market," stated Noelle Acheson, author of Crypto Is Macro Now. She attributes this outlook to emerging macroeconomic tailwinds including interest rate easing and potential policy measures like yield curve control to stabilize markets amid global economic concerns.
Acheson also projected positive momentum for altcoins, anticipating new spot ETF approvals that could shift investor focus toward smaller, more volatile tokens, potentially launching the next "alt-season."