Bitcoin price may face downward pressure due to the rapid growth of the labor market in the United States, the world’s largest economy.
The nonfarm payrolls report, released on June 7, tracks the change in employment numbers from the previous month, excluding the agricultural sector. If nonfarm payrolls exceed expectations, investors may start worrying about tighter monetary policies, potentially causing Bitcoin (BTC) to close the week below $70,000 as investors shy away from risky assets, as per Bitfinex analysts.
Surpassing estimates, nonfarm payrolls revealed over 272,000 new jobs created, surpassing the initial forecast of 182,000.
In another significant economic development, the European Union joined Canada in cutting interest rates this week. The European Central Bank (ECB) reduced its benchmark lending rate from 4% to 3.75% ahead of the EU-wide elections, marking the first rate cut in five years. This decision may inject more liquidity into Bitcoin, according to Bitfinex analysts.
Bitcoin’s daily trading remained mostly stagnant, but a slight 0.8% drop was observed just before 1:00 p.m. UTC, with the price at $71,186 according to CoinMarketCap data.
Positive institutional inflows from U.S. spot Bitcoin exchange-traded funds (ETFs) could help push BTC above $70,000 by the end of the week. This week alone, U.S. spot Bitcoin ETFs have accumulated over $1.54 billion in net inflows. Based on current trends, these ETFs could gather 3.74% of Bitcoin’s supply annually, as per Dune data.
On June 5, U.S. Bitcoin ETFs saw collective inflows of $488.1 million, marking the second-best inflow day of $886.6 million on June 4. By Feb. 15, Bitcoin ETFs represented about 75% of new investments in the cryptocurrency market as it crossed the $50,000 threshold.