BTC clings to $62K as US labor data fuels market watch

With the United States economy still struggling with unemployment and a decrease in manufacturing, Bitcoin (BTC) is capturing the interest of investors who want to speculate on the Federal Reserve’s future decisions and their impact on virtual currencies. 

On July 1, BTC rose by a mere 0.24% to $62,894, down from the previous day’s massive spike of 2.88%. This constant fluctuation in the value of Bitcoins mirrors recent economic indicators depicting relatively declining employment opportunities and chances, which may affect specific monetary policies.

Recent data reveals a tiny dip in the ISM Manufacturing PMI from 48.7 to 48.5 in June. This means that the manufacturing sector, which accounts for under one-third of the US economy, is still in decline. Importantly, employment in the manufacturing sector has declined, with the ISM Manufacturing Employment PMI index dropping to 49.3, which is below 50.

These numbers represent an extension of continuing claims for the week through June 29, above the expected 1,839,000. These trends indicate that investors are rebalancing their expectations, which include a slower policy tightening by the Federal Reserve in the coming months, even to the point of an interest rate cut this September. Such an environment could make digital assets like Bitcoin more appealing, supporting an optimistic Bitcoin future prediction.

However, the Federal Reserve can maintain interest rates in September with a slight modification of 35.9% to 35.2%, based on the CME FedWatch Tool. This minor shift underlines that the manufacturing sector does not significantly influence the government’s actual monetary policy. 

However, data on job openings, new weekly unemployment claims, and the US Jobs Report may have a stronger impact on the BTC price fluctuations because they highlight the issue of employment and its possible effects on inflation and economic growth.

Recently, the US BTC-spot ETF market has shown a relatively optimistic approach to caution. The recorded figures clearly show inflows for five consecutive days. In addition, GBTC recorded a mixed fund flow on the same day, whereas BITB received nearly $40 million in fund inflows. On this positive development, Hunger Horsely, CEO of Bitwise Invest, also opined that BITB is indeed working very well in getting capital and the absolute acceptance of Bitcoin by 2024 as a valid asset class to invest in.

With regard to BTC’s technical analysis, the cryptocurrency is currently trading within the support and resistance levels. However, the stock is currently trading above the 200-day EMA and below the 50-day EMA, indicating that it is both long-term bullish and short-term bearish. If the price of Bitcoin surpasses $64,000, it may approach $69,000, which could indicate a robust bullish trend. However, if it declines below the $60,365 support level, it could further complicate the current market conditions and attract attention to the 200-day EMA.

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Investors and market analysts closely monitor the interaction between conventional economic metrics and the constantly evolving cryptocurrency investment landscape as the Federal Reserve prepares for its forthcoming actions and the imminent release of substantial economic data.

Harsh Chauhan

Harsh Chauhan is an experienced crypto journalist and editor at CryptoNewsZ. He was formerly an editor at various industries and has written extensively about Crypto, Blockchain, Web3, NFT and AI. Harsh holds a Bachelor of Business Administration degree with a focus on Marketing and a certification from the Blockchain Foundation Program. Through his writings, he hold the pulse of rapidly evolving crypto landscape, delivering timely updates and thought-provoking analysis. His commitment to providing value to readers is evident in every piece of content produced.

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