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The U.S. economy’s robust labor market, highlighted by the latest nonfarm payrolls report, could exert downward pressure on Bitcoin prices.

The report, which excludes agricultural employment, showed that job creation in May surpassed expectations, potentially signaling a stronger economic outlook.

This development might lead investors to anticipate tighter monetary policy, as they shift focus towards more traditional assets, potentially impacting Bitcoin negatively.

According to Bitfinex analysts, “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.”

Indeed, the nonfarm payrolls for May revealed the addition of 272,000 jobs, well above the forecasted 182,000.

This could reduce the appeal of riskier assets like Bitcoin, which might struggle to maintain its value, possibly dropping below the $70,000 mark by the week’s close.

In Europe, economic maneuvers also painted a complex financial landscape.

The European Central Bank (ECB) reduced its benchmark lending rate from 4% to 3.75%, its first cut in five years, just ahead of the EU-wide elections.

Bitfinex analysts suggested that this rate cut could weaken the euro, thereby boosting the attractiveness of Bitcoin and other alternative assets.

READ MORE: Robinhood Expands into Crypto with $200 Million Bitstamp Acquisition Amid SEC Scrutiny

They noted, “The rate cut could weaken the euro, potentially leading to higher demand for alternative assets like Bitcoin.

“The increased liquidity from this monetary easing could also support risk assets, including cryptocurrencies.”

The price movements of Bitcoin were relatively flat, though it experienced a slight drop by 0.8% around midday UTC, trading at $71,186, according to CoinMarketCap.

However, positive trends in institutional inflows, particularly from U.S. spot Bitcoin ETFs, might yet bolster Bitcoin’s market position.

These ETFs have already seen significant inflows, amassing over $1.54 billion this week alone, indicating a strong investor confidence that could push Bitcoin’s price above the $70,000 threshold.

On June 5, U.S. Bitcoin ETFs reported inflows of $488.1 million, and an even more impressive $886.6 million on June 4, marking some of the highest single-day gains this year.

As of mid-February, Bitcoin ETFs represented about 75% of new investments into the cryptocurrency as it breached the $50,000 level, underscoring the significant impact of institutional investment on Bitcoin’s market dynamics.

To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.

Bitcoin‘s price maintained a steady position at $71,000 on June 7, even as analytical tools indicated potential tests of lower price levels soon.

The day’s trading data, as per Cointelegraph Markets Pro and TradingView, highlighted a bounce in Bitcoin’s value after it touched intraday lows of $70,120 on Bitstamp, just before the daily trading session concluded.

This trend of quick recoveries from lower values persisted throughout the week, marked by sharp downturns and subsequent rebounds.

A significant dip occurred on June 5 when Bitcoin’s price momentarily dropped to $69,600, only to recover later.

Material Indicators, a trading resource, noted this pattern, suggesting an impending test of the $69,000 support level.

They shared, “Both Trend Precognition algos are showing new #TradingSignals indicating that it may be time to retest local support,” in a social media post.

Keith Alan, co-founder of Material Indicators, expressed optimism about reaching this key support level, stating, “For me, a move back to $71.6k invalidates, and a hot Unemployment Report in the morning could be a catalyst for a move like that.”

He further emphasized the psychological significance of the $69,000 level, suggesting that its breach could confirm a bullish support-resistance flip.

Further adding to the analysis, Alan highlighted the impact of upcoming U.S. unemployment data, known to affect Bitcoin’s volatility.

During June 6 trading, Skew, a prominent trader, reported substantial Bitcoin sales on exchanges like Binance and Coinbase, including a single transaction of 2,000 BTC on Coinbase.

READ MORE: Robinhood Expands into Crypto with $200 Million Bitstamp Acquisition Amid SEC Scrutiny

Despite these sales, the market showed resilience, with bulls stepping in to prevent a further slide, as Skew had earlier warned could have more severe implications for Bitcoin’s pricing trend.

Michaël van de Poppe, CEO of MNTrading, noted that despite signs of strength, Bitcoin had not yet managed to exit its established trading range.

He remarked on social media, “Bitcoin is still stuck within the range, but very heavily ready for a breakout upwards to a new all-time high,” signaling a cautious optimism for a forthcoming surge.

Alan pointed to market manipulation by large investors, or ‘whales’, as a significant factor restraining Bitcoin’s ascent towards record highs.

He accused them of keeping prices low to protect their short positions, particularly noting a concentration of short positions between $71,500 and $75,000.

CoinGlass data indicated that $71,900 was a key focus for traders, representing a significant point of liquidity just above the current market price.

This observation suggests that Bitcoin’s price movements remain closely watched, with various factors influencing its short-term trajectory.

To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.

Bitcoin saw a 5.9% increase between June 2 and 5, peaking at $71,746, supported by almost $1 billion in inflows into U.S.-based spot Bitcoin exchange-traded funds (ETFs).

This indicates strong demand from institutional investors. Despite favorable conditions like a more crypto-friendly stance from U.S. lawmakers, Bitcoin couldn’t break the $72,000 barrier.

Bitcoin’s bullish momentum was partly due to the significant unrealized losses in the U.S. banking sector. However, regulatory uncertainty persists.

According to Matt Hougan, Bitwise’s chief investment officer, this uncertainty has kept financial advisers from increasing their crypto exposure.

Hougan believes the U.S. is moving toward regulatory clarity, starting with the Democrats’ vote to repeal the SEC’s Staff Accounting Bulletin 121.

The SEC’s approval of spot Ether ETFs suggests a softer stance towards crypto.

Yet, U.S. President Joe Biden’s veto of the SAB 121 repeal indicates that “crypto still has a long way to go,” Hougan notes.

An FDIC report states that U.S. financial institutions are currently facing $517 billion in accounting losses due to higher rates impacting their residential mortgage-backed securities, with 64 banks near insolvency in the first quarter of 2024.

Arthur Hayes, BitMEX co-founder, argued that printing more money could be a solution, favoring scarce assets like Bitcoin.

Hayes links Bitcoin’s 43% bull run starting in March 2023 to the collapses of Silicon Valley Bank and Silvergate Bank.

READ MORE: Bitcoin Surges to Two-Week Highs Amid Fresh Institutional Inflows and ETF Approvals

He suggests a similar pattern could occur in 2024. However, even if the Federal Reserve injects liquidity to prevent widespread bankruptcy, Bitcoin’s price might first decline if the stock and bond markets suffer.

Before the March 2023 rally, Bitcoin’s price dropped to $19,559, reflecting market uncertainty similar to movements in the U.S. two-year Treasury yield.

This indicates that traders were willing to trade yield for the security of a government-backed asset.

Investors might anticipate a price correction before another Bitcoin rally, although the consistent inflows into U.S. spot Bitcoin ETFs, totaling over $52 billion since January, could prevent this.

Additionally, the strong performance of U.S. tech stocks, such as Nvidia, pushed the S&P 500 index to an intraday all-time high of 5,342 on June 5. UBS analysts expect the Fed to cut rates twice this year, creating a “healthy backdrop for stocks,” according to CNBC.

This strong stock market performance might reduce incentives for alternative assets like Bitcoin.

GameStop’s 32% surge, driven by influencers and social media posts, may also divert interest from cryptocurrencies.

In summary, while Bitcoin could reach a new all-time high in 2024, the current comfort with fixed-income and stock market investments reduces the immediate incentive for a push above $71,000.

To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.

Bitcoin might be on its way to hitting the significant $100,000 mark as the “digital gold” narrative strengthens amid an impending banking crisis in the United States.

According to the Federal Deposit Insurance Corporation’s (FDIC) quarterly report published on May 29, at least 63 U.S. banks faced insolvency in the first quarter of 2024, an increase from 52 banks in the third quarter of 2023.

These banks collectively hold $517 billion in unrealized losses, a $39 billion rise from the previous quarter, marking the ninth consecutive quarter of unusually high losses. The FDIC report noted:

“Higher unrealized losses on residential mortgage-backed securities, resulting from higher mortgage rates in the first quarter, drove the overall increase.

:This is the ninth straight quarter of unusually high unrealized losses since the Federal Reserve began to raise interest rates in the first quarter of 2022.”

Concerns about the U.S. banking system escalated after the collapse of Silicon Valley Bank (SVB) and the liquidation of Silvergate Bank in March 2023.

New York regulators also shut down Signature Bank shortly after Silvergate’s liquidation.

In response, the Federal Reserve introduced the Bank Term Funding Program (BTFP), offering banks loans up to a year with “qualifying assets” as collateral.

BitMEX co-founder Arthur Hayes claimed this emergency measure initiated the Bitcoin bull run in 2023. Hayes remarked at Korea Blockchain Week:

READ MORE: Bitcoin to Reach $150,000 by Early September, Says Crypto Trader Peter Brandt

“Me and the rest of the market rightly saw through this as basically them admitting that they caused this problem — the structure of the banking system — and this is one of the ways you can fix it, which is: print more money.”

Bitcoin surged 26% from $21,900 to $28,054 during the week of March 13, 2023.

Jamie Coutts, chief crypto analyst at Realvision, highlighted the FDIC report’s validation of his price action model, anticipating Bitcoin to solidify above $63,000 before further gains. Coutts noted on June 4:

“After some nice coiling pricing action since March, my boring Bitcoin Trend model triggers. DXY down, Yields and Corp Spreads are lower.

“Can you smell that, son? That’s the smell of central bank liquidity in the air…”

Crypto analyst Trader Tardigrade also predicted a breakout to $100,000, stating on June 5:

“I’m not surprised that Bitcoin has broken out the recent Bull Pennant after the Breakout of Bull Flag. Both Bull Pennant and Bull Flag are promising chart patterns.

“The next surge could reach over $100k.”

Inflows from U.S. spot Bitcoin exchange-traded funds (ETFs) could further boost Bitcoin’s momentum. U.S. Bitcoin ETFs have seen net positive inflows for fifteen consecutive days as of June 4.

Despite the bullish outlook, Bitcoin faces significant resistance at $72,000, where breaking above could liquidate over $922 million in leveraged short positions, according to Coinglass data.

To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.