As the cryptocurrency market continues to fluctuate, all eyes are on today's US employment report, which could potentially ease the ongoing decline in Bitcoin (BTC).
Bitcoin Suffers Biggest Weekly Loss Since FTX Crash
The leading cryptocurrency by market cap fell below $54,000 today, marking its biggest weekly loss since the FTX crash in November 2022.
Bitcoin's recent decline, down more than 13% for the week, was partially fueled by the defunct Mt. It was triggered by news that the Gox exchange was moving $2.6 billion worth of BTC for purported creditor repayments.
Mt. Gox later confirmed that it had begun issuing refunds to its customers, prompting a subdued reaction from Bitcoin.
The US Bureau of Labor Statistics will release its June nonfarm payrolls (NFP) report on Friday at 3:30 p.m.
NFP data is expected to show the economy added 190,000 jobs in June, according to a consensus estimate of economists surveyed by FactSet; While this figure represents a significant slowdown from May's 272,000 additions, it will keep the unemployment rate steady at 4%.
In potentially positive news on the inflation front, average hourly earnings growth slowed to 0.3% in June from 0.4% in May, equating to a 3.9% year-on-year increase from 4.1% in May. It is expected to happen.
Macro investors, who have become increasingly involved in the BTC market since 2020, are closely monitoring the timing and number of Federal Reserve interest rate cuts.
Following last Friday's soft US PCE inflation data, investors have priced in nearly two rate cuts this year, according to CME's FedWatch tool.
If today's employment figures show weaker growth than expected, expectations for interest rate cuts may strengthen further.
*This is not investment advice.