Bitcoin’s price stands at $69,300 at the time of writing, and altcoins are also performing well. However, there has yet to be a significant price breakout. Despite reaching an all-time high earlier this year, Bitcoin has remained within its current range. The question now is whether we will witness a true breakout this week and what it holds for investors.
This Week in Cryptocurrencies
In our previous discussion, we highlighted the importance of significant developments. For a real breakout to occur, a catalyst is needed. This week, the event that could potentially shake or elevate the cryptocurrency markets is set to take place on Friday. While the week begins with a calm atmosphere in terms of macroeconomic data, it is likely to end with increased intensity. Stay updated with the latest financial and business news on COINTURK FINANCE.
Bitcoin Price and the Impact of Employment Data
Throughout the year, Bitcoin’s price has shown a strong reaction to employment data. Let’s recall the aftermath of abnormal Non-Farm Payroll data. On June 6, initial jobless claims in the US will be released, followed by the unemployment rate the next day. Additionally, wage growth and Non-Farm Payroll data will also be made available.
These data points are closely monitored by investors due to the Federal Reserve’s statements regarding employment. If there is a significant easing in employment, the Fed might consider implementing further easing measures. A weakening job market indicates that the Fed’s economic tightening efforts are yielding results. Considering the positive PCE data, the market is likely to welcome the upcoming employment data if it falls within expectations.
The Fed and Its Comments
Later this month, the Federal Open Market Committee will announce its decision on interest rates. These data will also impact the signals for a potential rate cut in September. In The Kobeissi Letter, it is mentioned that the reduction in interest rates is not necessarily a negative thing for the stock market. Federal Reserve Chairman, Jerome Powell, has been cautious in his recent statements. The inflation and PMI data have been normal. If the employment and wage growth data also come in as expected, Powell may not need to take a very hawkish stance. If this scenario plays out, we might see Bitcoin making new upward attempts on Friday.
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Disclaimer: The information provided in this article should not be considered investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct their own research.
