Bitcoin (BTC) saw rapid downward volatility at the open on Wall Street on June 7 as
Bitcoin (BTC) saw rapid bearish volatility at the open on Wall Street on June 7 as US jobs data surprised markets.
Bitcoin Fluctuates Due to Very Mixed US Jobs Data
Data from Cointelegraph Markets Pro and TradingView showed that Bitcoin price fell $1,300 on an hourly candle before entering a rebound.
Bitcoin joined the knee-jerk reaction to U.S. nonfarm payrolls data, which far exceeded expectations, suggesting the labor market was handling tight fiscal policy better than expected.
This, in turn, made it less likely that the Fed would cut interest rates – a prerequisite for the flow of liquidity into risk assets and cryptocurrencies.
Economist Mohamed El-Erian responded, as quoted by Bloomberg, saying: “This closes the door to an interest rate cut in July.”
The Federal Open Market Committee (FOMC) was scheduled to meet on June 12 to discuss interest rates, with markets now seeing little likelihood of a production cut at the next three such meetings.
According to data from CME Group’s FedWatch tool, the odds of a minimum 0.25% decline were 0.6%, 8.8% and 50.8%, respectively, for the June, July FOMC meetings. and September, at the time of writing this article.
Other reactions highlighted the strange contrast between high wages and unemployment, which at the same time rose to 4% – 0.1% above the expected level.
“The job market in the United States seems completely schizophrenic,” wrote commentator Holger Zschapetz in a post on X (formerly Twitter).
“While the BLS business survey shows 272,000 new jobs for May, the household survey shows a significant decline in the number of workers, down 408,000 jobs. This is why the unemployment rate in the United States increased from 3.9 to 4% despite the decline in the labor force participation rate.
BTC price remains confined to a “narrow zone”
When it comes to the Bitcoin price action itself, market participants have chosen to sit back while the volatility resolves itself.
Related: Bitcoin Hash Bars Flash for First Buy Signal Since BTC Price Hits $25,000
Popular trader Daan Crypto Trades noted that BTC/USD remained below key resistance, as it did before the data was printed, while fellow trader Skew said immediate bidders were needed to fuel the upward trend.
“Tight area here overall with previous highs and resistance ($71.6k),” he added in one of his various X posts.
Data from monitoring resource CoinGlass showed strong liquidity above and below the spot price, with resistance now focused at $72,600, up from $71,900 earlier in the day.
“We are still consolidating between key support and resistance levels between $67,000 and $72,000,” concluded Daan Crypto Trades.
“The longer price stays below this resistance, the more likely it is to break through, in my opinion. We will wait patiently :)”
The attached chart shows the recent higher highs, lower highs, lower lows and higher lows for BTC/USD, highlighting the overall sideways trading environment.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.
