The 911,000 job cuts in the US due to revised Labor Department data may affect the market and prospects for Bitcoin. This is the most significant revision, revealing labor market weakness.
Job Cuts in the US
The US Labor Department revised payroll data downward by 911,000 jobs, marking the biggest cut ever. These changes reflect labor market weakness, especially in sectors like leisure and hospitality, along with trade, transportation, and utilities. In addition, subsequent changes in May and June confirmed job reductions.
Bitcoin's Dependence on Market Liquidity
Bitwise strategist André Dragosch noted that the rise in liquidity reflected by major stablecoins points to an optimistic outlook for Bitcoin, even amid high inflation. There is a correlation between liquidity and Bitcoin price, which may soon lead to a price increase.
Growth Prospects for Bitcoin
The Federal Reserve is expected to cut interest rates by 25 basis points, which could positively affect Bitcoin prices. If Bitcoin's historical correlations with M2 money supply and gold hold, the price could reach levels between $167,000 and $185,000.
The job cuts in the US serve as an indicator of current economic conditions, creating the potential for changes in monetary policy. Bitcoin is likely to remain a focal point for investors amid these changes.
