Bitcoin’s price trajectory in February could be heavily influenced by an upcoming US labor market report, which may shape investor sentiment as March approaches.
The US Bureau of Labor Statistics is scheduled to release its latest labor market data on February 7. According to Ryan Lee, chief analyst at Bitget Research, the findings could play a pivotal role in determining Bitcoin’s price movement over the coming weeks.
Lee emphasized that the strength of the labor market will be a crucial element for Bitcoin’s performance. He explained:
“A robust labor market reduces the likelihood of immediate interest rate cuts by the Federal Reserve, which could put downward pressure on Bitcoin. Conversely, if the data suggests a weakening labor market, it may bolster expectations for rate cuts, creating a more favorable backdrop for Bitcoin’s price.”
Bitcoin saw a gain of over 13% in January but has struggled to maintain upward momentum, declining by nearly 0.5% in the past week, as per data.
Some market analysts are wary of a potential correction, with Bitcoin at risk of dipping below $96,000 if a reversal pattern materializes. Maintaining support above $101,000 on a weekly basis could be crucial to sustaining bullish sentiment in the short term.
Macroeconomic Factors Continue to Weigh on Bitcoin’s Price
The forthcoming labor market report is expected to be a key factor in Bitcoin’s performance in the coming months. According to a January 31 post by Benjamin Cowen, founder and CEO of Into the Cryptoverse, an unemployment rate around 4.1% could create an optimal environment for Bitcoin’s continued growth. He stated:
“If the unemployment rate lands at 4.1% or 4.2%, BTC is more likely to follow last year’s pattern and rise in February and March. However, if the rate is significantly higher, Bitcoin’s trajectory may become less predictable.”
Meanwhile, Bitcoin’s price remains closely tied to macroeconomic trends, particularly the Federal Reserve’s monetary policy stance. Market expectations now point to the first US interest rate cut occurring on June 18, based on the latest projections from the CME Group’s FedWatch tool.
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