In the face of a softening job market and rising unemployment figures in the United States, the globe’s premier economy, cryptocurrencies like Bitcoin may see an upswing.
The jobless rate in the U.S. climbed to 4.1%, exceeding the forecasted 4.0% and marking the highest point since December of the previous year.
This June, the American economy saw the addition of 206,000 jobs. Although this surpasses the predicted 191,000, it falls short of the 272,000 jobs reported in May, which was later adjusted to 218,000, as per the nonfarm payroll statistics released by the Bureau of Labor Statistics on the 5th of July.
Jag Kooner, the chief of derivatives at Bitfinex, suggests that the weakening labor market in the U.S. might act as a boon for the price of Bitcoin (BTC). In a conversation with Cointelegraph, Kooner shared his insights.
Bitcoin’s valuation has been on a downward trajectory for more than a month, slipping below the pivotal $60,000 threshold.
In related news:
– Analysts speculate that up to 99% of Mt. Gox’s $8.2 billion in Bitcoin could be sold.
– Bitcoin plunges below $54,000, hitting a four-month nadir.
On July 5th, at 1:04 pm UTC, Bitcoin’s price plummeted over 10.5% within 24 hours, reaching a low of $53,550, a level not seen since February of this year, according to Bitstamp data.
Chart depicting BTC/USD year-to-date performance. Courtesy of TradingView.
While some market participants are concerned that the bullish trend may have concluded, other experts, such as the esteemed analyst Rekt Capital, believe the current downturn aligns with previous Bitcoin market corrections.
Rekt Capital noted in a post dated July 4th:
Chart showing BTC/USD on a 1-week scale. Courtesy of Rekt Capital.
Furthermore, what’s the status of Bitcoin ETF flows?
The inflow of institutional funds into U.S. spot Bitcoin exchange-traded funds (ETFs) has been sluggish.
Currently, U.S. ETFs are on track to record their third successive week of net outflows, with over $315 million in cumulative outflows this week alone, based on Dune analytics.
Graph illustrating net weekly flows of Bitcoin ETFs. Source: Dune.
Kooner posits that Bitcoin ETF inflows might rebound if the faltering job market leads to anticipations of a potential cut in interest rates. However, he also observes a recent shortfall in inflows and “dip-buying” activities.
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