Bitcoin's February momentum hinges on next week's labor market data
Bitcoin’s price is increasingly influenced by macroeconomic conditions, particularly the upcoming US labor report on February 7. Analysts believe this data will play a crucial role in determining Bitcoin’s momentum for February. Ryan Lee, chief analyst at Bitget Research, notes that a strong labor market could imply reduced chances of Federal Reserve rate cuts, potentially leading to a price dip for Bitcoin. Conversely, weaker labor market signs might favor rate cuts, creating a more encouraging environment for the cryptocurrency. Bitcoin experienced a 13% rise in January but has recently faced challenges, with a decline of almost 0.5% over the past week. Technical analysis raises concerns about a possible correction unless Bitcoin maintains its position above the $101,000 weekly support. Analyst Benjamin Cowen suggests that an unemployment rate around 4.1% would be ideal for a continued bullish trend, whereas higher rates could introduce uncertainty. The market's focus remains on the interactions between labor data, Fed policy, and Bitcoin's price trajectory into March.
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