October 2022 started differently compared to previous Octobers, given that the crypto markets started on the back foot. Things changed for good last week after the U.S GDP report came on the positive side at 2.6%. This development changed the narrative for both the crypto and stock markets as the Dow Jones ended Friday being 828 points up.
The Dow Jones climbed to 32,861 and another rally can take it up to new highs. A stock market rally could pull the crypto markets up along with it and begin November (or Moonvember) well!
Today, the global crypto market cap stood at $1.01 trillion, a 1.28% decrease over the last day. However, the volume in the crypto market logged a decline of over 18% to $73.05 billion over the last 24 hours.
What you need to know
Crypto traders, along with counterparts in traditional finance, will be looking ahead to the Federal Reserve's next monetary-policy meeting, set to conclude Wednesday. Based on pricing from the CME exchange, traders in futures contracts on federal funds are almost certain the U.S. central bank will raise interest rates by 75 basis points (0.75 percentage point) this week, but there's growing speculation that officials may downshift to a slower pace of increases in December. All things being equal, faster price increases tend to be bad for prices of risky assets like bitcoin.
This week also will bring the U.S. jobs report for October, set to be released by the Labor Department on Friday. Economists estimate the economy added 195,000 jobs during the month, a slowdown from September,’s 263,000 increase but still a robust pace. Strong growth might keep pressure on the Fed to keep ratcheting rates higher.