The Bitcoin price experienced a slump, while major US stock indices rose on Friday, following the release of strong jobs report for May 2023. The US Bureau of Labor Statistics revealed that nonfarm payroll employment increased by 339,000, with the unemployment rate rising by 0.3 percentage point to 3.7%. This rise in jobs seems to be balanced with the average monthly gain of 341,000 over the past year. As a result, there’s a heightened level of uncertainty on whether the US Federal Reserve will tighten interest rates in the upcoming Federal Open Market Committee (FOMC) meeting.
The crypto market may witness significant volatility in the coming days due to this uncertainty. Several experts and Fed officials have indicated that there might not be a need to raise interest rates in the June meeting. As we approach the FOMC meeting, mixed expectations about the US Central Bank’s decision to pause rate hikes or not could lead to a shift in investor sentiment. This, in turn, could result in a rise in Bitcoin price, particularly after the Federal Reserve makes its decision.
The S&P 500 Index, known to correlate with the crypto market, saw a positive jump on Friday in response to the jobs data. Consequently, Bitcoin could be poised for an upward swing leading up to the FOMC meeting. However, there is a bearish outlook as well, with predictions that the leading cryptocurrency might plunge below the $26,000 and $25,200 support levels.
While proponents of Bitcoin believe that the strong jobs report and anticipation leading up to the FOMC meeting could benefit the cryptocurrency’s price, skeptics argue that the market uncertainties make it difficult to predict Bitcoin’s trajectory. Additionally, the fact that only 25% of respondents in the CME FedWatch Tool expect a rate hike in the June meeting suggests that there is still room for changes in the market perception.
In summary, the strong jobs report for May 2023 and the upcoming FOMC meeting have created an atmosphere of uncertainty in both the crypto and traditional markets. This has led to mixed opinions on the future of Bitcoin’s price, with some expecting a healthy increase, while others foreseeing a plunge. Amidst these differing viewpoints, it is imperative for investors to conduct thorough market research before venturing into cryptocurrencies, as neither the author nor the publication can be held responsible for personal financial losses.
Source: Coingape
