Bitcoin price may face pressure from the 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 in the previous month, excluding the agricultural sector. With nonfarm payrolls surpassing expectations, investors may worry about potential monetary policy tightening.
This could lead Bitcoin (BTC) to close the week below $70,000 as investors shy away from risky assets, as per analysis from Bitfinex experts. However, nonfarm payrolls exceeded forecasts with over 272,000 new jobs created, well above the anticipated 182,000.
In other economic news, the European Union followed Canada in cutting interest rates, with the European Central Bank (ECB) lowering its benchmark lending rate from 4% to 3.75%. This move, the first interest rate cut by the ECB in five years, could inject liquidity into Bitcoin, according to Bitfinex analysts.
Bitcoin was relatively stable on the daily chart but dropped 0.8% in the hour leading up to 1:00 p.m. UTC, trading at $71,186, based on CoinMarketCap data.
Positive institutional inflows from U.S. Bitcoin exchange-traded funds (ETFs) could help BTC close the week above $70,000. U.S. spot Bitcoin ETFs have seen over $1.54 billion in net inflows this week, equivalent to 3.74% of the annual Bitcoin supply, according to Dune data.
On June 5, U.S. Bitcoin ETFs received a total of $488.1 million in inflows, with a record-breaking $886.6 million on June 4. By February 15, Bitcoin ETFs represented about 75% of new investments in the cryptocurrency as it crossed the $50,000 threshold.