The recent data from the U.S. private sector revealed today indicates that U.S. labor market is struggling, and this could affect the financial market, especially the crypto space.
According to new reports, the U.S. market added only 99,000 jobs in August, a decrease from July’s figures of 110,000, signaling a weak trend in the job market.
Following this, many are now waiting on the upcoming Non-farm Payroll (NFP) report on Sept 6, to see how this new data might affect the crypto market.
How Can NFP Influence Bitcoin’s Next Steps?
NFP data has caused serious changes to the crypto market in the past. For Instance, the NFP report for July brought fear of possible recession, which led to a drop in the price of Bitcoin and other cryptocurrencies.
During the release of NFP data in July, Bitcoin lost 30% of its value, while other coins like Ethereum fell even more.
Moreover, the report could also affect the Fed’s decision on whether it would announce a cut in its interest rate on Sept. 18.
There is a probability that if the jobs data is weak, the Feb might lower its interest rate which could help boost the value of Bitcoin and other volatile investments. However, a weaker labor market could hurt the market’s confidence and cause bitcoin prices to drop.
Bitcoin’s Bearish Trend Continues
Bitcoin has been in a downtrend since March, and so far, there are no signs of a recovery. However, there are different views on what the future holds.
If the NFP report gives a stronger-than-expected job growth, Bitcoin could see a strong surge with the potential to reach $60,000 or higher.
If this scenario is reversed with the data coming out weaker than expected, Bitcoin price could see a temporary dip to $52,000 or $50,000. At the time of writing, Bitcoin is trading at $56, 143 according to Trading View.
Also Read: Bank of Canada Cuts Interest Rates: What Does It Mean for Bitcoin?
