Bitcoin, Ethereum brace for volatile week with upcoming Nonfarm Payrolls data release
- Bitcoin, Ethereum prices sustained above key psychological levels as market participants turn cautious ahead of the US Nonfarm Payrolls for June.
- Bitcoin’s recent gains could come unglued if the US NFP data arrives hotter than expected.
- US NFP data is expected to reverse the upward trend of the past three months as the consensus is 225,000.
Crypto market participants are gearing up for a volatility-filled week ahead of the US Nonfarm Payrolls (NFP) data for June. The consensus estimate is the addition of 225,000 jobs in June, and the unemployment rate is estimated to come in at 3.6% vs. 3.7% seen in May.
A hotter than expected jobs report could trigger volatility in risk assets like Bitcoin and Ethereum in the following week.
Also read: Bitcoin Weekly Forecast: Could BTC revisit $25,000 as ETF-induced hype dissipates?
Bitcoin price sustains above $30,000 ahead of key US data release
Typically, the release of US NFP data has ushered volatility into Bitcoin price action. The asset rallies in the event the actual payrolls figure is below the forecast. In other cases, there is a decline in BTC price as seen in the chart below.
In the former data releases from January to May, Bitcoin price declined three out of five times. According to the FXStreet economic calendar, the forecasted consensus is the addition of 225,000 payrolls in June. In the event that the actual number of payrolls added is below the market expectation, Bitcoin and Ethereum prices could rally next week.
Bitcoin price reaction to US NFP data releasesÂ
This is because the Federal Reserve’s monetary policy tightening would be perceived to be affecting the labor market as intended. A lower jobs number would give traders the impression that the Fed is less likely to raise interest rates since its policy is already working.
Crypto traders are watching to ascertain whether Bitcoin’s 10.5% monthly gains will come unglued with the release of the US NFP data. Both Bitcoin and Ethereum prices are above the key psychological levels at $30,000 and $1,800, respectively. A decline below these levels would signal a shift in sentiment among traders and indicate a deeper correction in prices in the long term.
A quick study of past data releases suggests that traders can expect a lag in crypto’s reaction to the release. Bitcoin price could end the day holding onto its monthly gains with volatility picking up its pace next week.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
