The post Bitcoin could see deeper correction after payroll data release: Bitfinex head of derivatives appeared on BitcoinEthereumNews.com.

Key Takeaways Bitcoin slumped 5% following cautious FOMC minutes release NFP data could lead to Bitcoin price stabilization or deeper correction Bitcoin (BTC) slumped 5% in the last 24 hours, reaching the sub-$57,000 price level for a brief period. This could be related to the cautious optimism that the FOMC minutes released this week showed to the market, signaling a wait-and-see approach from the Fed. Jag Kooner, Head of Derivatives at Bitfinex, added that the NFP numbers coming out tomorrow could lead BTC to stabilize or go for a deeper correction in the worst-case scenario. “The cautious tone of the Fed minutes, indicating a wait for more definitive economic data before rate cuts, could help to bring stability to Bitcoin prices or at worst result in a slight decline,” shared Kooner with Crypto Briefing. “Investors may also perceive the lack of immediate rate cuts as a sign of sustained economic uncertainty, potentially dampening risk appetite for volatile assets like bitcoin.” Notably, the minutes acknowledged that the US economy is slowing and that “price pressures were diminishing,” which supports a narrative of moderating inflation. This maintains the Fed’s approach of optimism towards a downward trajectory in inflation but without recognizing this as sufficient to justify immediate rate reductions, highlighted Kooner. Furthermore, the Non-Farm Payrolls (NFP) numbers are coming out tomorrow, and the market expects a decline in job growth from 272,000 in May to 200,000 in June. The unemployment rate will stay at 4% if those numbers come true. “In terms of labor market health, a reduction in job growth suggests a cooling labor market, aligning with the Fed’s observations of slowing economic activity. However, a steady unemployment rate indicates that while job creation is slowing, the overall employment situation remains stable.”  Therefore, the NFP report leaves the door open for…

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Filed under: News - @ July 4, 2024 8:20 pm