Bitcoin Priced Under Pressure as Traders Anticipate US Jobs Data
Bitcoin remained under pressure on February 7, trading around $97,000 amid expectations of a strong US jobs report. Jobless claims rose slightly, suggesting potential volatility ahead. Predictions indicate the addition of up to 300,000 jobs in January, which could influence Federal Reserve policies and affect risk assets, including Bitcoin.
Bitcoin (BTCUSD) remained subdued on February 7, as traders anticipated an impending US employment report, which may exert pressure on the cryptocurrency’s price. Following a drop of up to 3.5%, Bitcoin was trading around $97,000. Notably, US jobless claims exceeded expectations, but the cryptocurrency market showed reluctance to react positively, indicating potential volatility ahead.
The Kobeissi Letter raised questions regarding a significant jobs report, highlighting the possibility of a substantial increase in jobs added during January. According to prediction services, there appears to be an increasing divergence between official job estimates and market expectations, which could lead to additional pressure on risk assets before the weekend.
Forecasts from Kalshi indicate that prediction markets expect 238,000 jobs were added to the US economy in January, with a 28% chance that the actual number exceeded 300,000. This stronger-than-anticipated growth could enable the Federal Reserve to maintain elevated interest rates, consequently impacting financial markets.
Recent analyses, including insights from CME Group’s FedWatch Tool, suggest a prevailing uncertainty within the markets regarding any interest rate reductions in the first quarter of the year. Odds for a mere 0.25% rate cut during the Federal Reserve’s upcoming meeting in March stands at a mere 14.5%.
Despite this potential macroeconomic headwind, Bitcoin’s price action has been contained within a stable range, indicating reduced expectations for sudden volatility. Trader Mark Cullen remarked that the current price is surrounded by short-term liquidity, suggesting that both sides might experience fluctuation prior to any decisive move.
Another trader, Skew, echoed this sentiment, emphasizing that a significant external catalyst is necessary to trigger a more pronounced price trend for Bitcoin. Moreover, he underlined the critical importance of the day’s employment figures in influencing market movement.
The cryptocurrency market is continuously influenced by macroeconomic indicators, particularly labor market data in the United States. On February 7, traders were closely monitoring these indicators due to their potential impact on Bitcoin’s price fluctuations. Unexpected job growth can lead to shifts in financial policy, especially regarding interest rates set by the Federal Reserve, which in turn affects risk assets including cryptocurrencies like Bitcoin.
In conclusion, Bitcoin’s recent performance reflects the intricate relationship between macroeconomic indicators and cryptocurrency prices. The anticipation of US jobs data has created a cautious market atmosphere, with potential repercussions for Bitcoin’s price trajectory. As traders remain watchful for forthcoming employment figures, the cryptocurrency’s volatility may likely hinge on these developments.
Original Source: www.tradingview.com
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