According to Odaily Planet Daily, QCP Capital published an analysis that due to the strong correlation between cryptocurrencies and US stocks, the market weakness is temporary. As the US stock market recovers, cryptocurrencies may recover with it.

This correlation highlights that macroeconomic factors are the main drivers of risk asset prices. With the ADP employment report exceeding expectations, tomorrow's non-farm payrolls report will be key in confirming the strength of the US labor market.

The combination of expected rate cuts and labor strength could boost risk assets. While Middle East tensions have impacted Bitcoin in what has historically been a strong month for the cryptocurrency, the decline is temporary and anticipates an “October up” rally to prevail.