- Strong nonfarm payrolls could lead to tighter monetary policy, impacting Bitcoin’s price.
- ECB’s interest rate cut may boost Bitcoin demand through increased liquidity.
- Positive ETF inflows could help Bitcoin close the week above $70,000.
The accelerating labor market in the United States could put pressure on Bitcoin’s price, according to recent economic reports. The nonfarm payrolls report, published on June 7, showed a significant increase in employment, which could influence monetary policy and investor behavior. The nonfarm payrolls report measures the monthly change in employment, excluding the farming industry.
The latest report exceeded expectations, with 272,000 new jobs created, compared to the estimated 182,000. Bitfinex analysts suggest that this stronger-than-expected job growth could lead to concerns about tighter monetary policy, which might reduce investor appetite for risk assets like Bitcoin.
“If the NFP exceeds expectations significantly, it could signal a stronger economy, possibly leading to fears of tightening monetary policy. This might put downward pressure on Bitcoin as investors rebalance toward traditional assets,” Bitfinex analysts noted.
ETF Inflows and Bitcoin’s Price Outlook
Bitcoin’s performance has remained mostly flat, with a slight dip of 0.8% in the past hour, trading at $71,186, according to CoinMarketCap data. However, positive institutional inflows from U.S. spot Bitcoin exchange-traded funds (ETFs) could support Bitcoin’s price.
This week, U.S. Bitcoin ETFs have seen cumulative net inflows of over $1.54 billion. These inflows are expected to account for 3.74% of Bitcoin’s supply annually, based on Dune data. The ETFs recorded their second-best inflow day of $886.6 million on June 4, followed by $488.1 million on June 5.
With these positive ETF inflows, there is potential for Bitcoin to close the week above the crucial $70,000 mark, providing a bullish signal to investors amidst the mixed economic signals.
