With the anticipation of crucial employment data in the U.S., the cryptocurrency market shows signs of decline. Bitcoin and Ethereum are dropping, signaling investor caution.
Overview of Current Market Situation
Bitcoin has seen a 1% decline over the past 24 hours, dipping to $105,200. Ethereum has similarly dropped by 2.5%, reaching $2,400. Among the largest 30 cryptocurrencies, a downturn of up to 3% is evident. Vincent Liu from Kronos Research points out that weak liquidity reinforces a 'wait-and-see' approach in the market. Investors are closely watching employment data set to be released on July 3 and July 4.
Market Pressure from Trump's Spending Package
The spending package passed by the U.S. Senate forecasts trillion-dollar tax cuts and reductions in the public health insurance program. Analyst Nick Ruck suggests that this will increase pressure on risk assets, with the absence of exemption clauses potentially aggravating conditions, leading to lower transaction volumes until the regulation is voted on in the House of Representatives.
Outlook Ahead of Employment Data
Peter Chung from Presto Research has analyzed order books, indicating that while early liquidity signals might improve, the current downturn is still limited compared to traditional markets. Liu notes that a 3% decline in the top 30 cryptocurrencies is indicative of typical position-lightening ahead of data releases. Analysts emphasize that a 1% movement in Bitcoin corresponds to about 0.2% volatility in the stock market.
The situation in the cryptocurrency market remains tense as investors await employment data in the U.S. The pressure from regulatory variables, coupled with spending packages, leaves market forecasts uncertain, while price trajectories will depend on investor reactions to new economic data.
