Can Bitcoin close above $70K amid strong labor market?

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Niamh Kavanagh
Niamh Kavanagh
Niamh Kavanagh is a social media and digital marketing expert, CMO of Dream Machine Foundation, and storyteller with a purpose. She grew Dream Machine to 8M followers and edited videos that raised $750K for charity, earning attention from Oprah, Steve Harvey, and Khloe Kardashian.

Bitcoin price could be pressured by the accelerating labor market in the world’s largest economy, the United States.

The nonfarm payrolls report, published on June 7, measures the change in the number of people employed during the previous month, excluding the farming industry.

With nonfarm payrolls exceeding expectations, investors could become concerned with more monetary policy tightening.

This could result in Bitcoin (BTC) performing a weekly close below the $70,000 mark due to a decreasing investor appetite for risk assets, according to Bitfinex analysts:

“If the NFP exceeds expectations significantly, it could signal a stronger economy, possibly leading to fears of tightening monetary policy. This might put downward pressure on Bitcoin as investors rebalance toward traditional assets.”

However, nonfarm payrolls came in stronger than expected, with over 272,000 newly created jobs, topping the previously estimated 182,000.

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European Central Bank’s interest rate cut could increase Bitcoin price

In other significant macroeconomic developments, the European Union became the second major economy to cut interest rates this week, following Canada.

The European Central Bank (ECB) has cut its benchmark lending rate from 4% to 3.75%, ahead of the EU-wide elections. This marks the central bank’s first interest rate cut in five years.

The decision could add further liquidity to Bitcoin, according to Bitfinex analysts, who wrote:

“The rate cut could weaken the euro, potentially leading to higher demand for alternative assets like Bitcoin. The increased liquidity from this monetary easing could also support risk assets, including cryptocurrencies.”

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Can ETF inflows push Bitcoin above a weekly close of $70,000?

Bitcoin was trading mostly flat on the daily chart but fell 0.8% in the hour leading up to 1:00 p.m. in UTC, to change hands at $71,186, according to CoinMarketCap data.

BTC/USDT, 1-day chart. Source: CoinMarketCap

Positive institutional inflows from the United States spot Bitcoin exchange-traded funds (ETFs) could help BTC close the week above the crucial $70,000 mark.

So far this week, the U.S. spot Bitcoin ETFs have amassed over $1.54 billion worth of cumulative net inflows. Based on the current inflows, the ETFs are set to amass 3.74% of Bitcoin supply every year, according to Dune data.

Bitcoin ETF Net Flows, Weekly, in dollars. Source: Dune

The U.S. Bitcoin ETFs saw collective inflows of $488.1 million on June 5. The ETFs recorded their second-best inflow day of $886.6 million on June 4.

By Feb. 15, Bitcoin ETFs accounted for about 75% of new investment in the world’s largest cryptocurrency as it surpassed the $50,000 mark.

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