Analysts Suggest Bitcoin May Experience Volatility Due to US Wage and Unemployment Reports But Not Significant

Coin Realm reports:
Bitcoin may face more headwinds from the US wage and unemployment report today, but these are not significant compared to what has already happened in the market.
Earlier today, the Mt.Gox trustee transferred $2.7 billion worth of BTC from a cold wallet, shaking the market. Although repayment to creditors has not yet begun, the move still frightened investors.
At the time of writing, Bitcoin’s price has slightly rebounded after falling below $55,000 during the Asian trading session. Data from Coingecko shows that Bitcoin’s current trading price has once again exceeded $55,400, but it is still down 3.8% compared to the same period yesterday.
However, there is some mild good news: BRN analyst Valentin Fournier told Decrypt that the upcoming US economic report is unlikely to shock the market.
He said, “Employment and non-farm employment data better reflect the strength of the US economy, despite higher interest rates, rather than inflation itself.”
He added that the opposite is also true. Investors should not expect a significant economic rebound based solely on wages or unemployment rates. However, Bitfinex Derivatives Director Jag Kooner suggests there might still be some chain reactions.
He stated, “If the NFP report shows weaker-than-expected job growth, it could increase expectations for future rate cuts, which might boost Bitcoin prices as investors seek alternative assets in anticipation of looser monetary policy.” “Conversely, if the job market appears more resilient, Bitcoin may face downward pressure as the likelihood of recent rate cuts decreases.”
He further noted that if the economy “If market participants believe that economic uncertainty will drive the Fed to eventually cut rates, thereby enhancing Bitcoin’s appeal as an inflation hedge,” Bitcoin ETFs might see a slight rise.
Even so, Kooner pointed out that the liquidity of Bitcoin ETFs has always been unsatisfactory, and investors trying to acquire shares at a discount during Bitcoin’s adjustment have not shown much “buying on dips.”
For cryptocurrency investors, the new monetary policy report from the Federal Reserve, which will be released at 11 a.m. Eastern Time, just a few hours after the new data from the Bureau of Labor Statistics, might be more telling than wage or unemployment data.
Fournier wrote, “Investors trust [the core price index] and [personal consumption expenditures] more.” “Compared to Jerome Powell’s statement, the latest PCE has become a positive message for inflation, with very little impact, Powell’s statement claimed we need strong, consistent evidence to cool inflation.”