Bitcoin Faces Largest Weekly Loss Since FTX Collapse, Eyes on US Jobs Report

• Recent fluctuations continue to ripple through the cryptocurrency market, with Bitcoin (BTC) experiencing significant downward pressure.
• Insights are now turning towards today’s U.S. employment report, which might offer some respite and market stabilization.
• Bitcoin has posted its steepest weekly decline since the collapse of FTX last November, dipping below the $54,000 mark.

Discover the latest trends and data impacting Bitcoin’s performance, alongside expert analysis on market implications in our comprehensive crypto news article.

Bitcoin’s Steepest Weekly Decline Since FTX Collapse

Bitcoin, the leading cryptocurrency by market capitalization, has recently fallen below $54,000, marking its most significant weekly loss since the notorious FTX collapse in November 2022. This decline, exceeding 13% in a week, has raised alarms among investors and market analysts.

The Impact of Mt. Gox Payments

Speculation around the ongoing payments from the defunct Mt. Gox exchange added fuel to the fire. Reports suggested that creditors of Mt. Gox were moving approximately $2.6 billion worth of BTC, leading to market uncertainty. Subsequently, the confirmation of these repayments triggered a suppressed response from Bitcoin, intensifying the downward momentum.

Unpacking the U.S. Non-Farm Payroll Data

The Bureau of Labor Statistics in the U.S. is poised to release the June non-farm payroll (NFP) report today at 15:30. Forecasts from economists polled by FactSet anticipate that the economy added around 190,000 jobs in June. This represents a substantial slowdown from the 272,000 jobs added in May, though the unemployment rate is expected to remain stable at 4%.

Implications for Inflation and Wage Growth

On the inflation front, potential signs of relief might emerge. Average hourly earnings growth is projected to decelerate from 0.4% in May to 0.3% in June. Annually, this translates to a moderation from 4.1% in May to 3.9% in June. Such figures could temper market fears and offer a more favorable outlook.

Macro Investors and Federal Reserve Policies

Since 2020, macro investors have become increasingly influential within the BTC market, paying close attention to Federal Reserve interest rate adjustments. According to CME’s FedWatch tool, the market priced in almost two rate cuts this year following last week’s softer U.S. PCE inflation data. Weaker-than-expected employment figures today could further solidify expectations for imminent rate cuts.

Conclusion

As Bitcoin grapples with its largest weekly decline in recent memory, market participants are eagerly awaiting the latest U.S. employment data. The outcome could either stabilize the market or exacerbate current trends. Investors must stay abreast of these developments to navigate the volatile landscape and make informed decisions.