Bitcoin price dropped 1.13% on Friday, reaching $69,496.01, after the announcement of a drastic drop in US non-farm payrolls. The jobs report revealed only 12,000 new jobs, leading to some sell-offs in the bitcoin market. It was well below expectations of 113,000, indicating a cooling market and posing new challenges for the Federal Reserve.
Friday's nonfarm payrolls report showed job growth of just 12,000 positions, according to the US Bureau of Labor Statistics. It marked the lowest figure since December 2020. Although unemployment remained at 4.1%, sectors such as healthcare and government continued to hire. While manufacturing suffered losses due to strikes.
The market reaction to this data was immediate. Bitcoin, which maintains an upward trend surpassing its EMA 25, 50 and 200 moving averages, could not withstand the pressure and fell to $69,496.01, failing to break the resistance of $72,000.
Despite the weak jobs report, the dollar strengthened, which surprised many analysts who expected a weakening. This situation allows the Federal Reserve to consider a rate cut of 25 basis points. Although market expectations suggest that this might be insufficient, evidenced by the rise in the two-year Treasury bond yield to 4.21%.
As for Bitcoin ETFs, net capital outflows of $54.90 million were recorded, breaking an eight-day streak of positive inflows. The spot market also saw an outflow of $229.53 million, and futures saw a reduction of $1.55 trillion in positions.
Despite the drop, Bitcoin remains in an uptrend, supported by its moving averages. However, nervousness could intensify, as trading volume exceeded the 25-day average, signaling increased selling activity.
Next week will be crucial for the markets, with the US presidential election and the expected announcement by the Federal Reserve on interest rates. Both events could significantly influence the cryptocurrency market, which has already been a hot topic in political debates.
The Bitcoin market is facing a time of uncertainty, driven by unexpected economic data and upcoming political events. Investors should keep an eye on future developments that could shape the direction of the market.
Disclaimer: This information should not be construed as financial advice.