Summary:
Bitcoin reaches $61,600 amid anticipation of the U.S. September jobs report.
The jobs report could significantly influence Federal Reserve's interest rate decisions.
Ethereum sees a 1.1% increase but both cryptocurrencies down over the past week.
Analysts suggest Bitcoin is nearing a short-term recovery after recent corrections.
Investor sentiment remains calm, indicating potential stabilization in the market.
Bitcoin has made a slight recovery, reaching $61,600 in early European trading today, as investors await the crucial September jobs report from the U.S. Bureau of Labor Statistics. Currently, the price of Bitcoin has dipped slightly to around $61,300, reflecting a 1% increase on the day, according to data from CoinGecko.
Market experts suggest that this jobs report could significantly influence the Federal Reserve's policy on interest rates, which may directly impact cryptocurrency prices. Ethereum also saw a minor increase, rising 1.1% to $2,375, but both cryptocurrencies have faced declines over the past week, with Bitcoin down 7% and Ethereum down 11%.
The jobs report, scheduled for 8:30 a.m. ET, is anticipated to shed light on the Fed's potential interest rate cuts in November. Economists predict a slight decline in new nonfarm payrolls from 142,000 in August to 140,000 in September, while the unemployment rate is expected to remain steady at 4.2%.
The Fed's reaction to these figures is crucial for the crypto market, as a stable economic outlook could lead to a more cautious rate-cut cycle, which analysts believe might foster a favorable environment for a rebound in crypto prices. Despite recent volatility, some analysts believe that Bitcoin could be on the verge of a short-term recovery.
CryptoQuant's analysis of the Coinbase Premium Index suggests that demand from U.S.-based investors is still strong. Their analysis indicates that the recent correction from $66,000 to $61,000 could signal a potential short-term recovery.
However, recent flows from Bitcoin spot ETFs show a market in flux, with $54.1 million exiting these investment products recently. Notably, while some ETFs saw significant outflows, others like (IBIT) reported inflows of $35.9 million, indicating that some investors still find value in Bitcoin.
Analysts at 10x Research express a cautiously optimistic view, suggesting that the current sell-off might be nearing its end. They note that Bitcoin typically experiences corrections that reverse between the 5th and 7th of each month, hinting at a possible turning point.
Additionally, as institutional investors begin to rebuild their balances, the sell pressure appears to be easing. Investor sentiment is relatively calm, with low implied volatility and minimal demand for put options, indicating limited concerns over further downside risks. This aligns with historical trends where liquidations in Bitcoin futures often signal market lows, suggesting that the current sell-off might be winding down.
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