Bitcoin prices are experiencing notable volatility as the market anticipates the release of U.S. jobs data for August later today, analysts said.
Bitcoin Bitcoin
-4.70%
It is trading at $55,975 and is down 1.5% over the last 24 hours. Ether is also in the red, down 1% over the same period. The pricing page of the block.
It’s a crucial week for U.S. labor data. Thursday’s ADP private payrolls data showed growth slowed in August, the weakest monthly reading since 2021. That has stoked fears of an impending recession and raised expectations that the U.S. Federal Reserve will have to take preventive measures.
The August U.S. jobs report, due out today, will likely be a key factor in determining the size of the Fed’s rate cut, which is scheduled to be announced on September 18. The Bureau of Labor Statistics is due to release its monthly report on Friday at 8:30 a.m. ET, and is expected to report that nonfarm payrolls rose by 165,000 in August. The unemployment rate fell to 4.2%, according to the Bloomberg consensus estimate.
Bitcoin Market Volatility Will Continue
Ahead of the Federal Open Market Committee (FOMC) meeting in mid-September, rate traders see a 59% chance of a 25bp cut later this month, and a 41% chance of a 50bp cut, according to the CME FedWatch tool.
Amid expectations of a potential rate cut, one analyst suggests that volatility in the bitcoin market is likely to persist. “The market is expected to remain volatile, and while institutional investment and ETFs are likely to play a role in creating market stability, volatility is likely to persist,” OTC Capital CEO Brian Dixon told The Block.
BRN analyst Valentin Fournier highlighted an ongoing trend that is exacerbating market volatility. “Bitcoin exchange-traded funds are experiencing significant outflows, totaling $900 million last week. The upcoming U.S. jobs report may not lift market sentiment, but increased volatility could provide an opportunity for a reversal,” he told The Block.
The global cryptocurrency market cap has declined over the past 24 hours. 2.1% — now $2.6 trillion. Bitcoin According to CoinGecko data, its dominance is 53.8% and Ether dominance is 13.8%.
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