• Bitcoin price has been in a consolidation phase for the past few weeks, with the US releasing its latest non-farm payrolls (NFP) data expected to be a key catalyst.
• Economists surveyed by Reuters believe the economy added more than 200k jobs, with the unemployment rate remaining at 3.7%, and wages expected to have risen by 5.0%.
• The numbers will be important because they may influence the Federal Reserve, which has a dual mandate to ensure that inflation and unemployment rates are stable.
The past few weeks have seen Bitcoin price remain in a consolidation phase, with the upcoming release of the US non-farm payrolls (NFP) data set to be a key catalyst in terms of determining its direction. The data are important because they will provide insight into the performance of the US economy, and potentially influence the Federal Reserve’s decisions when it comes to setting interest rates.
Economists surveyed by Reuters believe that the data will show that the US economy added more than 200k jobs in December, with the unemployment rate remaining at 3.7%. Additionally, the average hourly earnings are expected to have risen by 5.0% compared to the previous month, while the participation rate is expected to remain at 62.1%. These figures will come a day after the ADP reported that the economy added 235k jobs.
The Federal Reserve has a dual mandate to ensure that inflation and unemployment rates are stable, and will often hike rates if it perceives inflation to be rising. This was the case in 2022, when the bank raised rates by 450 basis points. Therefore, the NFP payrolls data will be carefully watched by investors, as a strong result could be seen as bearish for Bitcoin prices.
It is also worth noting that the US economy has been performing relatively well recently, with the stock market hitting record highs, and the US dollar index continuing to rise. This could potentially be a factor in the performance of Bitcoin, as a stronger dollar could put downward pressure on BTC prices.
Overall, the NFP payrolls data will be a key factor in determining the direction of Bitcoin prices in the coming weeks. Investors should keep an eye on the data and its impact on the performance of the US economy and the US dollar index. Additionally, it will be interesting to see how the stock market performs in response to the data, as this could also have an impact on BTC prices.