While the decline in Bitcoin shook the market deeply, BTC fell to $ 56,700 during the day. However, BTC price recovered in recent hours and rose above $58,000.
While investors longing for a strong rise expect the recovery to continue, Bitfinex Derivatives President Jag Kooner stated that the US non-agricultural employment data to be announced tomorrow will affect the BTC price.
At this point, Bitfinex manager Kooner said, “BTC price will either rise, stabilize, or experience a deeper correction within the worst-case scenario,” according to the US Non-Farm Employment data to be announced on Friday, tomorrow.
Kooner said that according to NFP data, two scenarios await Bitcoin:
“In the first scenario, weaker-than-expected job growth could raise expectations for income and future interest rate cuts. Investors turn to alternative assets in anticipation of looser monetary policy, and the price of Bitcoin rises.
According to the second scenario, income growth is stronger than expected and the labor market becomes more resilient. This reduces the possibility of a rate cut and causes Bitcoin to be subject to downward pressure and declines.”
Finally, the Bitfinex manager stated that the FED minutes show that more precise economic data is awaited before interest rate cuts, and said that the FED's cautious approach to interest rate cuts may help stabilize Bitcoin prices.
According to Kooner, he stated that the cautious approach of the FED minutes could cause a slight decline in Bitcoin at worst.
“The FED's decision to maintain a wait-and-see approach before cutting interest rates signals optimism that inflation is in a downward trend. However, the FED does not see the decline in inflation as sufficient to reduce interest rates.”
*This is not investment advice.