On September 30, a crucial speech by Federal Reserve Chairman Jerome Powell is expected, which could significantly impact global financial markets, including cryptocurrencies. Experts warn that if Powell’s rhetoric is “hawkish,” it may heighten concerns and reduce investors’ risk appetite. Rachel Lucas from BTC Markets highlights that a tough stance from the Fed could further dampen interest in volatile assets, including Bitcoin and altcoins.

Spot Bitcoin ETFs Show Growth

Despite the potential negative consequences of Powell’s speech, spot Bitcoin ETFs continue to show positive dynamics. Over the past week, these financial instruments have attracted $1.11 billion, indicating sustained strong interest from institutional investors. Positive sentiment surrounding Bitcoin ETFs underscores confidence in the long-term prospects of cryptocurrencies, despite short-term market fluctuations.

Recovery of Ethereum Funds

After several weeks of negative performance, Ethereum funds have seen a recovery, attracting $84.5 million. This signals a return of interest in Ethereum, which plays a key role in the smart contract and decentralized application ecosystem. Investors are becoming active again in anticipation of network upgrades and developments in decentralized finance (DeFi) and Layer 2 (L2) technologies.

Impact of the U.S. Employment Report on the Crypto Market

In addition to Powell’s speech, the U.S. employment report at the end of the week is also expected to influence the cryptocurrency market. This report is an important economic indicator that affects Fed policy and overall risk appetite in financial markets. If the data shows a strong labor market, it could reinforce expectations of tightening monetary policy, potentially negatively impacting cryptocurrencies. Conversely, weak data could alleviate concerns about further interest rate hikes.