Bitcoin is back on a rollercoaster, with investors anxiously awaiting today’s U.S. employment data release.
The digital asset dipped 1.5% in the past 24 hours, currently hovering around $55,975.
Ether, too, has lost 1%, as crypto traders prepare for potentially bumpy conditions.
It’s a pivotal moment for the U.S. labor market.
Thursday’s ADP private payroll numbers showed the slowest growth since 2021, sparking fresh concerns about a possible economic slowdown and increasing the odds that the Federal Reserve might cut interest rates sooner rather than later.
The focus is now on today’s non-farm payroll report, due at 8:30 a.m. ET.
Analysts expect August to show 165,000 new jobs, with unemployment dipping to 4.2%.
These figures could heavily influence the Fed’s decision-making process when it meets on September 18 to potentially adjust rates.
The business community is also paying close attention. The crypto market, in particular, is bracing for more volatility.
Interest-rate traders are split: CME’s FedWatch tool shows a 59% chance of a quarter-point cut, while 41% foresee a steeper, 50-basis-point reduction.
Market instability is expected to persist. Institutional investments and ETFs may provide some stability over time, but volatility isn’t going anywhere just yet, analysts noted.
Valentin Fournier, an analyst at BRN, highlighted ongoing trends contributing to Bitcoin’s turbulence.
“Bitcoin exchange-traded funds saw significant outflows totaling $900 million over the past week. These U.S. job numbers are unlikely to lift market sentiment, but the heightened volatility might create opportunities for trend reversals,” he said.
Meanwhile, the global cryptocurrency market cap declined by 2.1% in the past day, now standing at $2.06 trillion.
Bitcoin’s dominance is at 53.8%, with ether holding at 13.8%, according to CoinGecko data.
As the U.S. jobs report looms, traders are preparing for what could be a key moment in both traditional markets and the unpredictable crypto world.
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