- Bitcoin, Ethereum prices sustained above key psychological levels as market participants turn cautious ahead of the US Nonfarm Payrolls for June.
- Bitcoin’s recent gains could come unglued if the US NFP data arrives hotter than expected.
- US NFP data is expected to reverse the upward trend of the past three months as the consensus is 225,000.
Crypto market participants are gearing up for a volatility-filled week ahead of the US Nonfarm Payrolls (NFP) data for June. The consensus estimate is the addition of 225,000 jobs in June, and the unemployment rate is estimated to come in at 3.6% vs. 3.7% seen in May.
A hotter than expected jobs report could trigger volatility in risk assets like Bitcoin and Ethereum in the following week.
Also read: Bitcoin Weekly Forecast: Could BTC revisit $25,000 as ETF-induced hype dissipates?
Bitcoin price sustains above $30,000 ahead of key US data release
Typically, the release of US NFP data has ushered volatility into Bitcoin price action. The asset rallies in the event the actual payrolls figure is below the forecast. In other cases, there is a decline in BTC price as seen in the chart below.
In the former data releases from January to May, Bitcoin price declined three out of five times. According to the FXStreet economic calendar, the forecasted consensus is the addition of 225,000 payrolls in June. In the event that the actual number of payrolls added is below the market expectation, Bitcoin and Ethereum prices could rally next week.
Bitcoin price reaction to US NFP data releases
This is because the Federal Reserve’s monetary policy tightening would be perceived to be affecting the labor market as intended. A lower jobs number would give traders the impression that the Fed is less likely to raise interest rates since its policy is already working.
Crypto traders are watching to ascertain whether Bitcoin’s 10.5% monthly gains will come unglued with the release of the US NFP data. Both Bitcoin and Ethereum prices are above the key psychological levels at $30,000 and $1,800, respectively. A decline below these levels would signal a shift in sentiment among traders and indicate a deeper correction in prices in the long term.
A quick study of past data releases suggests that traders can expect a lag in crypto’s reaction to the release. Bitcoin price could end the day holding onto its monthly gains with volatility picking up its pace next week.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Crypto Today: Bitcoin is less than 10% away from all-time high as Ethereum ETF approval anticipation brews
Bitcoin trades around $68,000 early on Monday, less than 10% away from its all-time high of $73,777 on Binance. Ethereum ETF anticipation brews among traders and Ether investment products see inflow of over $45 million in the past week.
Ripple lawsuit settlement likely soon, says Brad Garlinghouse, XRP hovers around $0.60
Ripple (XRP) trades around a key psychological level of $0.60, early on Monday. The altcoin recently made headlines for its highest weekly gain of 2024, over 40%. XRP sustained nearly 21% of the gains from the last seven days.
Solana could cross $200 if these three conditions are met
Solana’s total value locked climbs 18% in July to $5.38 billion, as seen on DeFiLlama. Solana sustains over 20% gains in the past seven days, corrects nearly 3% on Monday. Active addresses and new address count in the Solana network have increased throughout July.
ALT, WLD, ENA, ID set for $200 million token unlocks next week
The crypto market is set to experience another wave of token unlocks next week, with Altlayer (ALT), Worldcoin (WLD), Ethena (ENA), and Space ID (ID) set for a combined token unlock worth about $200 million.
Bitcoin: Will BTC continue its bullish momentum?
Bitcoin (BTC) price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166.