The new U.S. employment report caused significant financial market changes, impacting the crypto market.
Job Growth and Its Consequences
In December, the U.S. added 256,000 jobs, surpassing the expected 160,000. The unemployment rate fell to 4.1% from 4.2% in November. This news pressured Bitcoin's price down from $95,000 to $92,000. These job figures have led to a reassessment of Federal Reserve rate expectations, with many traders now thinking rate cuts may be postponed until October.
Analysts' Predictions on Potential Bitcoin Drop
Analysts express concerns regarding further Bitcoin declines. Titan of Crypto, a well-known analyst, noted that current price movements might mirror a fractal from summer 2020, when unemployment was similarly low. He highlighted critical resistance levels for Bitcoin in the $75,000–$80,000 range. Analyst Rekt Capital sees signs of potential recovery, noting a bullish divergence around $91,000 support.
Future Inflation Data and Market Expectations
Traders await new inflation data, including the Producer Price Index and Consumer Price Index next week. These reports could influence Federal Reserve rate expectations and the future behavior of Bitcoin and other risky assets.
The crypto market continues to monitor U.S. economic indicators that could affect its future performance.
