The latest cryptocurrency news is that Bitcoin (BTC) has seen a 1.8% dip in price as it grapples with the “schizophrenic” new U.S. jobs data. The Bitcoin price experienced a flash downside volatility at the opening of Wall Street, as the U.S. payrolls data surprisingly surpassed expectations, suggesting that the labor market is coping better with tight fiscal policy than forecasted.
Bitcoin Reacts to Unusual U.S. Employment Data
The U.S. nonfarm payrolls data vastly beat expectations, pushing back the odds of the Federal Reserve lowering interest rates, which is a crucial prerequisite for a liquidity influx into risk assets and cryptocurrencies. Economist Mohamed El-Erian commented that the data “does close the door on July rate cut,” as reported by Bloomberg.
The curious contrast between the strong payrolls and the rise in unemployment to 4% (0.1% above the predicted level) has led to the market being described as “completely schizophrenic” by commentator Holger Zschaepitz. He noted that while the Establishment survey by the Bureau of Labor Statistics reported 272,000 new jobs for May, the Household survey showed a large drop of 408,000 jobs in the number of employed.
Bitcoin Price Action and Resistance Levels
Regarding the Bitcoin price action, market participants have chosen to take a backseat, allowing the volatility to resolve itself. Bitcoin remains below key resistance levels, and trader Daan Crypto Trades noted that the cryptocurrency is consolidating between the major support and resistance levels of $67,000 and $72,000.
According to data from CoinGlass, liquidity is thickening both above and below the spot price, with $72,600 now being a focus for resistance, up from $71,900 earlier in the day. Trader Skew mentioned that spot bidders are needed to fuel the uptrend, as Bitcoin is stuck in a “tight area” here, generally with previous highs and resistance levels.
Conclusion
In summary, the latest cryptocurrency news highlights the impact of the “schizophrenic” U.S. employment data on Bitcoin’s price action. The cryptocurrency has experienced a 1.8% dip, as the unexpected strength in the labor market has pushed back the odds of the Federal Reserve lowering interest rates, a crucial factor for the crypto market. Bitcoin is currently consolidating between key support and resistance levels, and market participants are closely watching the developments in the U.S. economic landscape.