Today’s financial spotlight is firmly on the anticipated release of the US nonfarm payroll statistics, which could signal a turning point for Bitcoin’s recent downturn.
**Bitcoin Witnesses Largest Weekly Drop Post-FTX Turmoil**
Bitcoin’s value dipped below the $54,000 mark today, a decline reminiscent of the tumultuous period following the FTX collapse in November 2022. This week alone, Bitcoin has seen a reduction exceeding 13%, a slump sparked by the defunct Mt. Gox exchange’s movement of $2.6 billion in BTC, allegedly for settling creditor claims. This development was later confirmed by Mt. Gox, which announced the commencement of customer reimbursements, leading to a muted response from the Bitcoin market.
The US Bureau of Labor Statistics is set to unveil the June nonfarm payrolls (NFP) data later today at 3:30 p.m. Forecasts suggest the addition of 190,000 jobs in June, a deceleration from May’s 272,000 job surge, yet sufficient to maintain the unemployment rate at a steady 4%.
**Inflation and Interest Rate Speculations Amidst Market Volatility**
In a potentially optimistic twist for inflation rates, the growth in average hourly earnings is expected to slow to 0.3% in June from May’s 0.4%, translating to a year-on-year rise of 3.9% down from 4.1%. Macro investors, increasingly active in the Bitcoin sphere since 2020, are keeping a close watch on the Federal Reserve’s interest rate adjustments.
Post the subdued US PCE inflation figures last Friday, market participants are now factoring in the possibility of nearly two rate cuts within the current year, as per the CME’s FedWatch tool. Should today’s employment data reveal weaker-than-anticipated growth, it could further solidify the case for a reduction in interest rates.
**Note:** This content is not intended as investment advice.
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