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Bitcoin Analyst Eyes U.S. Jobs Report Amid Sell-Off
Bitcoin analyst closely watching the U.S. jobs report amidst recent sell-off in the market. Stay informed with the latest updates and analysis.
As the sell-off in bitcoin (BTC) becomes unhinged, one analyst is pinning hopes on Friday’s U.S. jobs report to temper the decline. Bitcoin dipped below $54,000 early Friday amid reports that the defunct exchange Mt. Gox moved BTC worth $2.6 billion, supposedly for creditor repayments. Later on, Mt. Gox said that it has begun repayments to its customers, leading to a subdued reaction from bitcoin. The cryptocurrency was down over 13% for the week, marking the most significant single-week percentage decline since FTX’s collapse in November 2022.
The U.S. Bureau of Labor Statistics is set to release the nonfarm payrolls (NFP) report for June on Friday at 12:30 UTC. Economists expect the data to show the economy added 190,000 jobs in June, with the jobless rate remaining steady at 4%. Average hourly earnings growth is forecast to slow to 0.3% in June from 0.4% in May, equating to a 3.9% year-on-year rise.
Macro traders are closely monitoring the timing and number of Fed rate cuts. Traders have nearly priced in two rate cuts for this year following last Friday’s soft U.S. PCE inflation data. A weaker-than-expected jobs figure on Friday could increase expectations for future rate cuts, potentially boosting bitcoin prices as investors seek alternative assets.
Jag Kooner, head of derivatives at Bitfinex, stated that inflows into U.S.-listed spot bitcoin ETFs could rise if market participants anticipate future rate cuts due to economic uncertainty. The magnitude of inflows will depend on broader market sentiment and demand for risk assets. If the job market appears resilient, bitcoin might face downward pressure as near-term rate cut expectations diminish.