Crypto Market Holds Steady as Traders Await Key U.S. Economic Data

The cryptocurrency market remained largely unchanged on Monday and Tuesday following last week’s $1.5 billion liquidation flush. Bitcoin and Ethereum defended critical support levels, but traders remain cautious as they look ahead to a week packed with U.S. economic data that could set the tone for October.

Bitcoin bulls managed to protect the $110,000 support level multiple times, while Ether recovered from a sharp drop to $4,075 after nearly half a billion dollars in leveraged longs were wiped out. The total crypto market cap now sits near $3.85 trillion, slightly lower than last week despite a 3.5% weekend rebound.

Market sentiment remains fragile. The fear-and-greed index plunged to “extreme fear” at 28 on Friday but bounced back to a neutral 50 by Monday. Bitcoin has consolidated between $108,000 and $118,000, with funding rates stabilizing after liquidations. Analysts suggest altcoins are showing stronger rebounds than BTC, hinting at potential leadership in the next rally.

Attention now shifts to U.S. macroeconomic data, with Consumer Confidence, Jobless Claims, and Friday’s pivotal September Jobs Report in focus. Any signs of labor market weakness could reignite rate cut expectations, boosting crypto assets. Strong job numbers, however, may keep inflation concerns alive and limit upside momentum.

Ethereum is also at an inflection point, drawing interest after the launch of the first U.S. ETF with staking features. Meanwhile, Solana has seen its total value locked surge to $12.2 billion, fueling calls for a $300 price target. Meme coins continue to attract attention, with their sector capitalization climbing 70% over the past three months.

Regulatory risks remain a headwind. Reports suggest U.S. regulators are investigating potential insider trading linked to crypto reserves, while Moody’s has warned that rapid stablecoin adoption in developing nations could pose risks to financial stability and monetary sovereignty.

With macroeconomic uncertainty, regulatory scrutiny, and technical resistance levels converging, crypto traders are preparing for a decisive October.