Bitcoin BTC tickers down $43,079 and plunged into the Wall Street open on February 2 following an unexpected spike in US jobless figures. On Bitstamp, data from TradingView and Cointelegraph Markets Pro showed a $500 hourly candle decline.
When U.S. nonfarm payrolls for January came in at almost double estimates—353,000 vs 185,000—Bitcoin saw an instant reaction. As the data revealed that a restricted spending plan was not as detrimental to the economy as previously believed, sellers took the initiative. Thus, interest rates may continue to rise, depriving risky assets, such as cryptocurrencies, of liquidity.
Ted Talksmacro Has An Optimistic View Towards The Bitcoin Price Drops As He Thinks Long-Term
The Federal Reserve decided unanimously on January 31 to maintain Bitcoin rates at their historical levels, despite Fed Chair Jerome Powell’s efforts to debunk rumors that reductions may occur in March. The unemployment numbers supported that story, as investors discounted the likelihood of a cut until May. The odds of the shift happening in March were 17.5% as of the moment of writing compared to 45% previously in the week, according to data from CME Group’s FedWatch Tool. Caleb Franzen, the founder of Cubic Analytics, reacted on X (previously Twitter): “After all of the doom & gloom after last month’s NFP data about how revisions would push the December figure lower, the reality is that the December numbers were revised up to +333k from +216k.
Financial analyst Ted Talksmacro expressed optimism in his response that went beyond the short-term, direct consequences of the job loss. He stated in a post via X that he “wouldn’t be shocked if cryptocurrency is back near its highs in just a few hours.” “In the long run, robust employment data is beneficial; however, the market overreached itself when it came to price reductions — this is a warning call.”