Aaryamann Shrivastava
FXStreet
- Bitcoin price has remains largely unchanged, falling to no lower than $42,500 during intra-day volatility.
- Nonfarm Payrolls in the United States rose by 216,000 in December against the expectations of 170,000.
- Some sell-off is generally the norm since the United States Dollar is strengthening, but spot Bitcoin ETF approval may upend.
Bitcoin price tends to take a hit along with the rest of the market whenever the US Nonfarm Payrolls report comes in higher than expectations, but this won’t be the case this time around. While the December jobs report was over 25% better than the market had expected BTC will probably stay on its bullish course thanks to the potential spot ETF approval.
US Nonfarm Payrolls brings good news for the economy
On Friday, the US Bureau of Labor Statistics (BLS) released the Nonfarm Payrolls (NFP) data for the month of December 2023. The body reported a 216,000 rise in jobs while the market was awaiting a reading of 170,000, a substantial increase against expectations.
At the same time, November’s increase of 199,000 was revised to 173,000, which was significantly lower. Nevertheless, the Unemployment Rate remained unchanged at 3.7%.
The impact of the report on the United States Dollar index (DXY) was initially bullish, rising by 0.39%. Soon after the market switched gears, however, and had dipped by 0.24% at the time of writing. A better-than-expectations report tends to act as a catalyst for DXY as more jobs suggest a stronger economy, which in return strengthens the US Dollar.
Furthermore, a strong jobs report results in a decline in the value of risky assets such as cryptocurrencies. BTC is probably safe from an extended sell-off, however, owing to the upcoming bullish events linked to the expected approval of a spot Bitcoin ETF.
Bitcoin price stands strong
Bitcoin price, trading at $43,800 at the time of writing, is expected to keep its head up and refrain from any major decline as the crypto market is expecting bullish news. The Securities and Exchange Commission (SEC) is expected to approve more than a dozen spot Bitcoin ETF applications in the next couple of days.
BTC/USD 1-day chart
This event is speculated to mark the initiation of the bull run, and the hype surrounding this approval will likely stave off any bearishness. Hence, the crypto market will probably remain largely unaffected by the stronger-than-expected Nonfarm Payrolls report.
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