Bitcoin’s price may face downward pressure due to the rapidly growing labor market in the United States, the world’s largest economy.
The nonfarm payrolls report, released on June 7, tracks the change in employment levels from the previous month, excluding the agricultural sector. If nonfarm payrolls continue to exceed expectations, investors may become worried about potential tightening of monetary policy.
As a result, Bitcoin (BTC) could close the week below $70,000 as investors become less interested in risky assets, as stated by analysts at Bitfinex.
Despite expectations, nonfarm payrolls showed a strong performance, with over 272,000 new jobs created, surpassing the previous estimate of 182,000.
In other news, the European Union followed Canada in cutting interest rates, with the European Central Bank reducing its benchmark rate from 4% to 3.75% ahead of the EU-wide elections. This marks the first interest rate cut by the central bank in five years, which could potentially inject more liquidity into Bitcoin, according to Bitfinex analysts.
Positive institutional inflows from U.S. Bitcoin exchange-traded funds (ETFs) could help push BTC above $70,000 by the end of the week. This week alone, U.S. spot Bitcoin ETFs have seen over $1.54 billion in cumulative net inflows, which could account for 3.74% of Bitcoin supply annually, based on current trends, according to data from Dune.
On June 5, U.S. Bitcoin ETFs saw combined inflows of $488.1 million, with the second-largest inflow day of $886.6 million recorded on June 4. By February 15, Bitcoin ETFs had already made up about 75% of new investments in the cryptocurrency as it crossed the $50,000 mark.