• The US Bureau of Labor Statistics reported a record 517,000 jobs added last month with an unemployment rate dropping to 3.4%.
• This strong report caused yields across the US treasury curve and the US dollar to surge while Bitcoin initially fell.
• Despite an intra-day recovery, Bitcoin could still head lower in the short-term.
Strong US Jobs Report
The US Bureau of Labor Statistics reported a record 517,000 jobs added last month with an unemployment rate dropping to 3.4%. This much stronger-than-expected labor market report beat economist expectations across the board and caused yields across the US treasury curve and the US dollar to surge.
Impact on Bitcoin
The strong economic data initially sent Bitcoin lower, however buyers came in to support risk assets on hopes that it increases the chance that the Federal Reserve is able to achieve its much hoped for „soft landing“. Despite this intra-day recovery, many crypto traders and analysts opined via social media that Bitcoin could still head lower in the short-term.
Despite likely near term volatility due to this news, on chain metrics such as network activity and miner revenues remain bullish indicators for Bitcoin’s long term price trajectory. These metrics indicate that there is significant underlying demand for bitcoin despite any near term fluctuations in price due to macroeconomic events or sentiment changes.
Risk of Revisions
There are some who express skepticism about the headline NFP number citing a risk of big revisions ahead. However, even with possible future revisions, analysts agree that “the ‚real‘ number is probably still going to be a very strong one” regardless of what happens next.
Bumpy Ride Ahead?
In conclusion, although Friday was a choppy day in the Bitcoin market with prices swinging between losses and gains of about 1% each way as traders digested this latest economic news; there might be further bumps in store for bitcoin investors but overall on chain metrics continue to scream bull market for bitcoin long term.