Markets
Bitcoin Hits $69,000 as US Jobs Data Fuels Market Volatility
Bitcoin (BTC) price fell to $69,000 following the release of mixed US employment data on Friday, prompting liquidations of more than $411 million.
This decline followed the cryptocurrency market’s reaction to new economic indicators, which showed both positive and worrying signs for the US economy.
Economic indicators and market sentiment set the stage for Bitcoin’s next move
Nonfarm Payrolls enlarged at 272,000 for May, significantly above April’s 165,000 and the Dow Jones esteem of 190,000. However, the unemployment rate rose to 4% for the first time since January 2022.
Job gains were notable in healthcare, government, leisure and hospitality. Analysts view this report as hawkish, suggesting it could delay interest rate cuts.
To know more: How to protect yourself from inflation using cryptocurrency
According to CME’s FedWatch tool, futures indicate a 50.5% chance of a rate cut by September. The market remains uncertain, leading to an increase volatility in the cryptocurrency market, especially for Bitcoin.
Data from Coinglass shows that total cryptocurrency liquidations in the past 24 hours reached $411.88 million, affecting nearly 148,000 traders. Long positions accounted for $360.41 million, while short positions totaled $51.47 million.
Total cryptocurrency liquidations. Source: Coinglass
Despite the recent decline, renowned analyst Markus Thielen offers a positive outlook for Bitcoin in the long term. In his latest report, Thielen highlights the potential for Bitcoin to reach $83,000, led by a head-and-shoulders bullish formation and favorable macroeconomic factors.
Highlights the role of the global central bank easing cycle recent interest rate cuts in Canada, Denmark and Europe, and further easing is expected in the United States due to weakening economic indicators. Thielen explains that while the Federal Reserve historically avoids rate cuts during the May-November period before presidential elections, market sentiment and the perceived likelihood of rate cuts are crucial for risky assets like Bitcoin.
Also note Potential Impact of Ethereum (ETH). on Bitcoin, especially if its price drops sharply. Thielen discusses the importance of money flow indicators, pointing out that substantial inflows are needed to drive significant price movements in Bitcoin.
“To reach the $83,000 target (+17%), we would need to see $13 billion in inflows across various verticals – this is what is needed. A breakout of the $71,600 trend line will naturally result in more upside buying across more products, but $13 billion requires some effort. However, we believe this is possible given the weaker (4% unemployment rate) and lower US job market inflation next week’s data (3.3%) will likely provide the macro backdrop for new all-time highs,” he explained.
Interest from institutional investors is growing further strengthens Bitcoin’s long-term prospects. Significant acquisitions by institutions and steady inflows into US spot Bitcoin Exchange Traded Funds (ETFs) illustrate this trend.
To know more: How to Trade a Bitcoin ETF: A Step-by-Step Approach
ETFs have recorded inflows for 19 consecutive days, surpassing the previous record of 17 days. According to SoSo Value data, the total cumulative net inflows of these ETFs as of June 7 is $15.69 billion, with BlackRock’s iShares Bitcoin Trust (IBIT) dominates to $21.07 billion in net worth.
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