• The Bitcoin price continues to be strongly influenced by the macroeconomic conditions in the US, with the recent 5-month high of $24,241 followed by a 3% decline this weekend.
• The strong US labor market data released last Friday was largely responsible for this drop as it caused a surge in the dollar index (DXY).
• This week, investors will mainly be focusing on Fed Chairman Jerome Powell’s comments tomorrow and US initial jobless claims data on Thursday.
Bitcoin Price Drop After US Labor Market Data
The Bitcoin price has been declining since its 5-month peak of $24,241 last Wednesday due to macroeconomic factors in the US. Over the weekend, BTC dropped another 3% and was priced at $22,810 as of press time. The initial surge was a result of Federal Reserve’s interest rate hike decision and dovish comments from Jerome Powell but this was dampened by strong US labor market data released last Friday.
US Job Growth And DXY Bounce
According to figures from the U.S. Bureau of Labor Statistics, an impressive 517,000 new jobs were added last month which is likely to extend the Federal Reserve’s current monetary policy leeway. As a consequence, there has been a surge in the dollar index (DXY) from below 101 to 103 – dragging down BTC accordingly.
Focus On Fed Chair Powell And Initial Jobless Claims
This week crypto investors will mainly be paying attention to what Fed Chairman Jerome Powell has to say during his press conference tomorrow (Tuesday), hoping that he will repeat his dovish statements from FOMC or make new ones that could potentially support Bitcoin prices again. Additionally, U.S.’s initial jobless claims report on Thursday will also influence investor confidence as this is considered one of the most important measures for assessing labor market conditions in America.
A Chance To Rebound?
On February 14th there will be another significant event when Consumer Price Index (CPI) for January comes out which could offer an opportunity for BTC prices to rebound if its results are favorable enough for investors’ sentiment towards Bitcoin and other cryptocurrencies in general..
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