Could Bitcoin Close Above $70K in a Strong Job Market?
Bitcoin (BTC) prices may be under pressure from the accelerating labor market in the world's largest economy, the United States.
The nonfarm payrolls report, published June 7, measures the change in the number of people employed over the past month, excluding the agriculture industry.
With non-farm payrolls coming in better than expected, investors may be concerned about further tightening of monetary policy.
This could lead Bitcoin (BTC) to perform a weekly close below the $70,000 mark due to a decrease in investor appetite for risk assets, Bitfinex analysts said.
“If the NFP is better than expected, it could indicate a stronger economy, possibly leading to fears of monetary policy tightening. This could put pressure on Bitcoin as investors return to traditional assets.
However, nonfarm payrolls came in stronger than expected, with more than 272,000 new jobs created, up from the previous estimate of 182,000.
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The interest rate cut by the European Central Bank may increase the price of Bitcoin
In other notable macroeconomic developments, the European Union became the second largest economy to cut interest rates this week, after Canada.
The European Central Bank cut its benchmark lending rate from 4% to 3.75% ahead of the EU-wide elections. This prompted the central bank to cut interest rates for the first time in five years.
According to Bitfinex analysts, the decision could add more liquidity to Bitcoin.
“The rate cut could weaken the euro, which could lead to increased demand for alternative assets such as Bitcoin. The increased liquidity from this monetary easing could support risk assets, including cryptocurrencies.”
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Could ETF Earnings Push Bitcoin Above $70,000 Weekly Close?
According to CoinMarketCap data, bitcoin traded mostly flat on the daily chart, but fell 0.8% in the hour to 1:00 pm UTC, to change hands at $71,186.
Positive institutional inflows from US 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 collected more than $1.54 billion worth of net inflows. Based on current earnings, Dune data shows, ETFs are set to collect 3.74% of Bitcoin's supply annually.
US Bitcoin ETFs posted $488.1 million in revenue on June 5. ETFs posted their second-highest day of inflows on June 4, with $886.6 million.
On February 15, the Bitcoin ETF topped $50,000, taking 75% of new investment into the world's largest cryptocurrency.
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