Experts suggest that the labor market in the United States will demonstrate a slowdown. According to their forecast, the number of new jobs outside the agricultural sector will be from 125,000 to 130,000, which is much lower than the April indicator of 177,000. The weak data on the labor market can strengthen the expectation of investors that inflation will begin to slow down and have a positive effect on bitcoin quotes.
“If the first cryptocurrency is held above $ 105,000, in July it can aim at $ 120,000-150,000. Although the labor market is only one of the aspects, it can contribute to the“ domino effect ”in a chain of factors that can push the Fed to a faster softening of monetary policy,” analysts explained.
If the dollar is strengthened, the pressure on the first cryptocurrency will increase, and with this development of events, the range of $ 95,000-97,000 will serve as a local bottom where the accumulation of the asset is already noticeable, according to Bitfinex.
The market expects to preserve the Fed’s rate in the current range of 4.25–4.5% until the end of July and the vast majority of investors do not expect to reduce it until September. In general, the price dynamics of bitcoin will be within $ 100,000-125,000 for several months, experts summed up.
Earlier, the founder of Global Macro Investor and Real Vision, Raul Pal, said that the US growing state debt, problems with demography and printing money by the Central Bank pose a threat to the depreciation of fiat currencies, turning bitcoin into an effective tool for hedging inflation risks.
Source: Bits
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