Bitcoin’s price may face downward pressure due to the growing labor market in the United States, the world’s largest economy.
The nonfarm payrolls report, released on June 7, tracks the change in the number of employed individuals in the previous month, excluding the farming sector. With nonfarm payrolls surpassing expectations, investors may worry about potential monetary policy tightening.
As a result, Bitcoin could see a weekly close below $70,000 as investor interest in risk assets dwindles, as predicted by Bitfinex analysts. Nonfarm payrolls exceeded forecasts, with 272,000 new jobs created compared to the estimated 182,000.
In another significant development, the European Union became the second major economy to cut interest rates this week, following Canada. The European Central Bank (ECB) reduced its benchmark lending rate from 4% to 3.75%, marking its first rate cut in five years ahead of the EU-wide elections. This move could inject more liquidity into Bitcoin, according to Bitfinex analysts.
Bitcoin’s daily trading activity remained relatively stable, but it dipped by 0.8% to $71,186 in the hour leading up to 1:00 pm UTC, according to CoinMarketCap data.
Positive institutional inflows from U.S. spot Bitcoin exchange-traded funds (ETFs) could help Bitcoin close the week above $70,000. This week alone, U.S. spot Bitcoin ETFs saw over $1.54 billion in net inflows. Based on current trends, these ETFs are on track to accumulate 3.74% of Bitcoin supply annually, per Dune data.
On June 5, U.S. Bitcoin ETFs collectively received $488.1 million in inflows, with the second-highest inflow day of $886.6 million recorded on June 4. By February 15, Bitcoin ETFs had accounted for approximately 75% of new investments in the cryptocurrency as it crossed the $50,000 threshold.