Bitcoin prices may face downward pressure as a result of the rapidly growing labor market in the largest economy in the world, the United States.
The nonfarm payrolls report, which was released on June 7, measures the change in the number of people employed in the previous month, excluding the farming industry. With nonfarm payrolls surpassing expectations, investors may start to worry about potential monetary policy tightening.
This could lead to Bitcoin (BTC) closing the week below the $70,000 mark as investor interest in risk assets declines, as per analysis from Bitfinex analysts.
Despite expectations being exceeded, nonfarm payrolls revealed over 272,000 new jobs created, surpassing the previous estimate of 182,000.
In other macroeconomic news, the European Union recently became the second major economy to cut interest rates this week, following in the footsteps of Canada. The European Central Bank (ECB) has reduced its benchmark lending rate from 4% to 3.75%, marking its first rate cut in five years ahead of the EU-wide elections.
Bitfinex analysts believe that this decision could inject more liquidity into Bitcoin. On the other hand, the positive institutional inflows from U.S. Bitcoin spot exchange-traded funds (ETFs) could potentially help BTC close the week above $70,000.
The U.S. spot Bitcoin ETFs have seen over $1.54 billion in cumulative net inflows this week, which could account for 3.74% of Bitcoin supply annually based on current inflows, according to data from Dune.
The U.S. Bitcoin ETFs witnessed a collective inflow of $488.1 million on June 5. The ETFs also experienced their second-highest inflow day of $886.6 million on June 4.
By February 15, Bitcoin ETFs represented approximately 75% of new investments in the leading cryptocurrency as it crossed the $50,000 threshold.