As Bitcoin experiences adecline,the Bitfinex DerivativesPresident,JagKooner,suggests that upcomingU.S.non-farmemployment data will significantly impactBitcoin’spricedirection.
Points
- Bitcoinpricerecentlydroppedto$56,700beforerecovering.
- U.S.non-farmemploymentdatawillinfluenceBitcoin’sprice.
- Twopotentialscenariosdependingontheemploymentdataoutcome.
Bitcoin’sPriceMovementandMarketReactions
While the decline in Bitcoin shook the marketdeeply,BTC fell to$56,700during theday.However,BTC price recovered in recent hours and rose above$58,000.
While investors longing for a strong rise expect the recovery tocontinue,Bitfinex Derivatives President Jag Kooner stated that theU.S.non-agriculturalemployment data to be announced tomorrow will affect the BTCprice.
At thispoint,Bitfinex manager Koonersaid,“BTCprice will eitherrise,stabilize,or experience a deeper correction within theworst-casescenario,”according to theU.S.Non-FarmEmployment data to be announced onFriday,tomorrow.
Kooner said that according to NFPdata,two scenarios awaitBitcoin:
“Inthe firstscenario,weaker-than-expectedjob growth could raise expectations for income and future interest ratecuts.Investors turn to alternative assets in anticipation of looser monetarypolicy,and the price of Bitcoinrises.
According to the secondscenario,income growth is stronger than expected and the labor market becomes moreresilient.This reduces the possibility of a rate cut and causes Bitcoin to be subject to downward pressure anddeclines.”
TheFederalReserve’sInfluenceonBitcoin
Finally,the Bitfinex manager stated that the FED minutes show that more precise economic data is awaited before interest ratecuts,and said that theFED’scautious approach to interest rate cuts may help stabilize Bitcoinprices.
According toKooner,he stated that the cautious approach of the FED minutes could cause a slight decline in Bitcoin atworst.
“TheFED’sdecision to maintain await-and-seeapproach before cutting interest rates signals optimism that inflation is in a downwardtrend.However,the FED does not see the decline in inflation as sufficient to reduce interestrates.”
Thisis not investmentadvice.
WrappingUp
The upcomingU.S.non-farmemployment data will play a crucial role in determiningBitcoin’spricedirection.Bitfinex Derivatives President Jag Kooner outlines two potentialscenarios,emphasizing the importance of these economicindicators.Investors should keep a close watch on the data release and be prepared for possible market reactions based on theoutcomes.