Bitcoin (BTC) Price Hits $71000, Here’s Why
Highlights
- Bitcoin price reaches $71,000 amid US labor market slowdown.
- JOLTS report shows job openings at a three-year low of 8.06 million.
- Positive Bitcoin futures sentiment indicates a bullish market outlook.
The price of Bitcoin (BTC) reached $71,000. This surge coincides with a cooling US labor market and a growing sense of optimism in the cryptocurrency market.
Bitcoin Price Soars Amid Decline in Job Openings
The latest Job Openings and Labor Turnover Survey (JOLTS) report from the Bureau of Labor Statistics revealed a decline in job openings for the second consecutive month. With 8.06 million positions available in April, this figure represents a three-year low and falls below economist expectations of 8.36 million. Additionally, the ratio of available U.S jobs to unemployed workers dropped to 1.2, marking its lowest point since June 2021.
While these figures suggest a potential slowdown in hiring, other labor market indicators remained relatively stable. The quits rate, reflecting voluntary job separations, held steady at 2.2% for the sixth month. Layoffs reached their lowest level since December 2022, dropping to 1.52 million in April. Analysts believe this ongoing stability in layoffs indicates continued positive net job growth, even with a slower hiring pace.
The Federal Reserve (Fed) closely monitors these labor market developments as they gauge inflation. A moderation in demand, potentially signaled by the cooling job market, could pave the way for the Fed to consider interest rate cuts in the future. However, the central bank is likely waiting for further confirmation of slowing price hikes before taking such action.
BTC Futures Show Increased Bullish Activity
The rise in Bitcoin’s price comes amidst a shift in market sentiment towards bullishness. This trend is reflected in the positive funding rate for BTC futures contracts over the past few weeks. A positive funding rate suggests that traders holding long positions (betting on a price increase) receive fees from those holding short positions. This scenario signifies a market where most traders anticipate increasing Bitcoin price.
Furthermore, futures trading activity has also increased significantly in recent days. This behavior by futures traders, known for their swift reactions to market movements, suggests they are positioning themselves for a continuation of the Bitcoin rally. This increased activity bolsters the overall bullish sentiment surrounding the cryptocurrency.
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