As the sell-off in bitcoin (BTC) intensifies, analysts are closely watching Friday’s U.S. jobs report for potential effects on the cryptocurrency market. Bitcoin slipped below $54,000 amid news of the defunct exchange Mt. Gox moving $2.6 billion worth of BTC for creditor repayments. The subsequent announcement of repayments by Mt. Gox resulted in a relatively subdued reaction from bitcoin, which had experienced a significant decline of over 13% for the week.
The U.S. Bureau of Labor Statistics is scheduled to release the nonfarm payrolls (NFP) report for June, with economists forecasting an addition of 190,000 jobs and a steady jobless rate of 4%. Additionally, the average hourly earnings growth is expected to slow in June, potentially influencing inflation rates.
Macro traders are particularly concerned about the timing and number of potential Fed rate cuts. With traders already pricing in two rate cuts for this year following last week’s soft U.S. PCE inflation data, the market anticipates a dovish approach that could impact risk assets positively.
Jag Kooner, head of derivatives at Bitfinex, suggested that weaker-than-expected job growth in the NFP report could lead to increased expectations of future rate cuts, potentially boosting bitcoin prices as investors seek alternative assets in anticipation of looser monetary policies.
Kooner highlighted the importance of market sentiment and demand for risk assets in determining the magnitude of inflows into spot bitcoin ETFs. He noted that while a resilient job market could alleviate pressure on bitcoin, a weaker outlook could prompt further interest in the cryptocurrency.
Overall, the impact of the U.S. jobs report on bitcoin prices will depend on a variety of factors, including economic indicators, market sentiment, and the Federal Reserve’s monetary policy stance.