Bitcoin (BTC) passed $62,000 at Thursdays Wall Street open as crypto reacted to weak US employment figures.
Key points:
- US nonfarm payrolls data delivers a crypto market boost as job additions for June fall short.
- Investors eye an easing in the inflation outlook as optimism over BTC prices increases.
- Crypto begins its forecast “green July” by liquidating nearly $500 milllion of short positions.
Bitcoin gains amid “volatile situation” for US labor market
Data from TradingView showed new July highs of $62,137 on Bitstamp, with BTC/USD up nearly 4% on the day.
The latest nonfarm payrolls data from the Bureau of Labor Statistics (BLS) showed that the US added far fewer jobs than expected in June, at 57,000 versus the anticipated 114,000.
“Both the unemployment rate, at 4.2 percent, and the number of unemployed people, at 7.1 million, changed little in June,” an official news release stated.
The jobs numbers painted a weak picture of the labor market — a potential tailwind for risk assets should the Federal Reserve loosen financial policy as a result.
“May's jobs number was also revised down by -43,000 jobs,” trading resource The Kobeissi Letter noted in a reaction on X.
“The labor market remains in a volatile situation.”
As Bitcoin and altcoins headed higher, crypto trader and analyst Michaël van de Poppe was among those shifting toward a more optimistic mid-term market view.
“Inflation expectations have come down. Now, unemployment drops too. It's at its lowest level in close to a year. Those are strong, public signals about the direction of the markets,” he told X followers.
“I don't think we'll see another drop on Bitcoin if Bitcoin can clearly break through $65,000 from here.”
Bitcoin “buyers are back and strong”
Other market participants also drew attention to Bitcoin bulls newfound strength.
Related: Bitcoin bear market ‘dead’ after first TD9 reversal signal since July 2022 fires
“Price drilling through large asks on Binance perps orderbook is actually sign of strength. Plus, we have chasing bids supporting aggressive buyers,” commentator Exitpump reported about exchange order-book data.
“Buyers are back and strong.”
Data from CoinGlass put 24-hour crypto short liquidations at nearly $450 million at the time of writing.
“Welcome to green July,” trader and analyst Rekt Capital continued.
As Cointelegraph reported, Rekt Capital expects a July relief rally for Bitcoin before bear-market momentum resumes in August.
An accompanying chart, which featured the 21-month and 50-month exponential moving averages (EMAs), drew comparisons to the 2022 bear market, with the implication that the cycle lows were still to come.
“And once Bitcoin turns the 50 EMA into new resistance on this relief rally, it will likely enter additional Bearish Acceleration over time,” Rekt Capital added in a separate X post.