Bitcoin is wobbling under $97,000, threatened by US employment figures well above expectations. A labor market that is too robust could indeed trigger another drop in BTC. Thus, this would keep the FED in a tight monetary policy.
Bitcoin traders fear a collapse below $95,000
Since the beginning of the month, the price of bitcoin has shown signs of weakness. Specifically, it fluctuates between $100,000 and $95,000. The recent correction of 3.5% is explained by fears of an explosive employment report in the United States.
According to the prediction markets, there would indeed be a 28% chance that more than 300,000 jobs were created in January. A figure well above Wall Street’s expectations, which was betting on 169,000 jobs!
Such an announcement would have a direct impact on the FED, which could maintain high interest rates for longer. This would limit the appeal of risky assets like bitcoin! The volatility of BTC could then explode with a real risk of falling below the critical threshold of $95,000.
Bitcoin and liquidity: a market under pressure before the FED
Crypto traders are also watching the bitcoin liquidity markets. Currently, BTC liquidity hovers around $95,000 and $100,000. This means that the cryptocurrency market could evolve within this range as long as no external catalyst triggers a stronger movement.
According to crypto analyst Skew, the BTC market is currently in a waiting phase, blocked by macroeconomic uncertainties.
Analysis:
As long as the FED does not give clear signals about a possible interest rate cut, the BTC trend will remain uncertain.
The FedWatch tool from CME Group shows that the markets anticipate only a 14.5% probability of a rate cut as early as March. Such caution reinforces the pressure on the crypto market, leaving doubts about the immediate future of bitcoin.
Bitcoin traders will therefore need to closely monitor the upcoming macroeconomic indicators as well as announcements from the FED. The crypto market may experience a volatile week, full of panic and opportunities to seize for the more astute.
Maximize your Cointribune experience with our “Read to Earn” program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
Je m’appelle Ariela et j’ai 31 ans. J’oeuvre dans le domaine de la rédaction web depuis maintenant 7 ans. Je n’ai découvert le trading et la cryptomonnaie que depuis quelques années. Mais c’est un univers qui m’intéresse beaucoup. Et les sujets traités au sein de la plateforme me permettent d’en apprendre davantage. Chanteuse à mes heures perdues, je cultive aussi une grande passion pour la musique et la lecture (et les animaux !)
Financial Market Newsflash
No financial news published today. Check back later.
