Bitcoin Faces $70K Test as Jobs Surge

Stronger-than-expected job figures may lower Bitcoin, but ETF inflows could help BTC close above $70,000 weekly. Analysts weigh in on these market dynamics.

The tightening job market in the biggest economy in the world, the United States, may put pressure on the price of BTC.

Published on June 7, the nonfarm payrolls report tracks changes in the total number of employed individuals over the previous month, omitting the farming sector.

When nonfarm payrolls beat forecasts, markets may worry about further tightening monetary policy.

Because of declining investor interest in riskier assets, this might lead to BTC$71,445 having a weekly close below the $70,000 threshold, according to Bitfinex analysts:

“If the NFP exceeds expectations significantly, it could signal a stronger economy, possibly leading to fears of tightening monetary policy. This might put downward pressure on Bitcoin as investors rebalance toward traditional assets.”

Nonfarm payrolls, on the other hand, exceeded estimates by almost 272,000 newly created positions, showing strength beyond expectations.

Interest Rate Reductions by the European Central Bank Could Raise the Price of BTC.

In other noteworthy macroeconomic news, the European Union trailed Canada as the second-largest country to lower interest rates this week.

Before the E.U. elections, the European Central Bank (ECB) lowered its benchmark lending rate from 4% to 3.75%. The first interest rate reduction by the central bank in five years occurs now.

Analysts at Bitfinex speculated that the action might increase Bitcoin’s liquidity. They wrote:

“The rate cut could weaken the euro, potentially leading to higher demand for alternative assets like Bitcoin. The increased liquidity from this monetary easing could also support risk assets, including cryptocurrencies.”

Can Bitcoin surpass a weekly closing of $70,000 due to inflows into ETFs?

According to CoinMarketCap statistics, BTC was trading essentially flat on the daily chart but dropped 0.8% in the hour before 1:00 p.m. UTC, changing hands at $71,186.

Good institutional inflows from U.S. spot Bitcoin exchange-traded funds (ETFs) could support a closing price for BTC above the critical $70,000 threshold this week.

This week, the total net inflows into U.S. spot Bitcoin ETFs have exceeded $1.54 billion. Dune data indicates that the ETFs are expected to accumulate 3.74% of the Bitcoin supply annually based on current inflows.

On June 5, there was a cumulative inflow of $488.1 million into the U.S. Bitcoin ETFs. On June 4, the ETFs had their second-best inflow day at $886.6 million.

As BTC crossed the $50,000 threshold on February 15, ETFs represented over 75% of fresh capital invested in the most prominent cryptocurrency in the world.