Bitcoin (BTC) Price Could Get a Boost as US Unemployment Rate Hits 4.1%, the Highest Since December 2021

A worsening labor market and rising unemployment in the United States, which is the largest economy in the world, could turn out to be beneficial for Bitcoin and other risk assets.

The U.S. unemployment rate hit its highest level since December 2021 on Friday, a development that could bode well for Bitcoin as investors seek alternative assets amid worsening economic indicators.

A shrinking labor market and rising unemployment in the United States, the world’s largest economy, could benefit Bitcoin and other risky assets.

The U.S. unemployment rate was projected to reach 4.0% but instead hit 4.1%, its highest level since December 2021.

The U.S. economy added 206,000 jobs in June, falling short of expectations and marking a significant decline from the 272,000 jobs added in May, which was later revised to 218,000, according to nonfarm payroll data released by the Bureau of Labor Statistics on July 5. Despite exceeding the anticipated 191,000 jobs, the addition was still notably lower than before.

A worsening U.S. labor market could positively impact the price of Bitcoin, according to Jag Kooner, head of derivatives at Bitfinex. He told Cointelegraph, "If the NFP report indicates weaker-than-expected job growth, it could raise expectations for future rate cuts, which might bolster Bitcoin prices as investors seek alternative assets in anticipation of a looser monetary policy."

Bitcoin price action

The price of Bitcoin dropped by over 10.5% in the 24 hours leading up to 1:04 pm UTC on July 5, falling to a low of $53,550, which was over four months below its previous high, according to Cointelegraph.

While some traders are worried that the bull cycle may be ending, other analysts, like the prominent Rekt Capital, believe that the current drop is consistent with other corrections that Bitcoin has experienced.

TF withdrawal trends

Institutional contributions to U.S. Bitcoin exchange-traded funds (ETFs) have also been sluggish.

With over $315 million in cumulative net withdrawals so far this week, U.S. ETFs are set to record their third straight week of net negative inflows, according to Dune data.

If the weaker labor market can lead to expectations of a possible interest rate cut, Bitcoin ETF flows could see an uptick, according to Kooner. He also noted the lack of inflows and "dip-buying" activity recently.

The above is the detailed content of Bitcoin (BTC) Price Could Get a Boost as US Unemployment Rate Hits 4.1%, the Highest Since December 2021. For more information, please follow other related articles on the PHP Chinese website!