Bitcoin Holds Steady Ahead of U.S. Jobs Report:
Bitcoin (BTC) remained stable as the dollar index faced losses in anticipation of the upcoming U.S. jobs report, expected to reveal ongoing low unemployment rates. Despite minor fluctuations, BTC traded relatively unchanged, contrasting with the weakening dollar index following the Federal Reserve’s recent dovish stance.
The recent sell-off in Bitcoin’s price has halted post-Fed meeting, allowing for a modest recovery, with further potential gains contingent on the impending U.S. nonfarm payrolls data.
The U.S. Labor Department’s nonfarm payrolls report, anticipated to be released at 12:30 UTC, is projected to indicate the addition of 243,000 jobs in April, slightly lower than March’s figures. The unemployment rate is expected to remain below 4% for a 27th consecutive month, while average hourly earnings are forecasted to have increased by 0.3% month-on-month.
As Bitcoin stabilizes near $59,000, up over 4% from recent lows, the dollar index has weakened, prompted by Powell’s dismissal of an imminent rate hike during a press conference following the Federal Open Markets Committee’s decision.
The upcoming jobs report could prove pivotal for market dynamics, particularly influencing bets on Fed rate cuts. ING’s strategists suggest that weaker-than-expected data may reinforce expectations for a September rate cut, potentially leading to further declines in the dollar.
With net-speculative positioning on the dollar at its highest since June 2019, there remains substantial room for a long squeeze, particularly if U.S. data softens in the coming weeks.
Bitcoin could benefit from continued weakness in the dollar, as it often exhibits an inverse relationship with the greenback, reflecting global liquidity conditions.
