• Mt. BTC is on its way to the biggest weekly drop since November 2022 due to fears about Gox.
  • Bitfinex says that a weaker-than-expected U.S. job growth could cause BTC to fall.
  • Payroll data is due on Friday and should show that job growth slowed dramatically in June.

BTC Price Index and Live Chart – CoinDesk”>(BTC) becomes unhinged, one analyst is pinning hopes on Friday’s U.S. jobs report to temper the decline.

Bitcoin, the most valuable cryptocurrency in terms of market value , fell below $54,000 on Friday morning amid reports that Mt. Gox moved BTC valued at $2.6 billion to allegedly repay creditors. Mt. Gox announced that it has started repayments to customers. This led to a subdued response from bitcoin.

According to CoinDesk and TradingView, as of the time this article was written, cryptocurrency had fallen over 13% in the past week. This is the largest single-week percentage drop since FTX collapsed in November 2022.

According to the consensus forecast of economists surveyed by FactSet, the NFP data is expected to show that 190,000 jobs were added in June. This represents a significant decrease from May’s 272,000 additions. The consensus of FactSet ‘s survey of economists predicts that the NFP report will show a decline in the number added jobs from 272,000 in May to 190,000. This is a marked change from the 272,000 job additions made in May.

The average hourly earning growth rate is expected to drop to 0.3% from 0.4% in June, which would be a decrease of 3.9% on an annual basis, compared to the 4.1% in May.

Macro traders who have been dabbling in the BTC markets since 2020 are most concerned about the timing and the number of Fed rate reductions. According to CME’s FedWatch, since last Friday’s weak U.S. PCE data, traders are almost pricing in two rate reductions for this year.

Jag Kooner is the head of derivatives for Bitfinex, a crypto exchange. He says that if Friday’s employment figures show a weaker than expected growth in jobs, then this will strengthen expectations.

Kooner, in an email to CoinDesk, said that if the NFP report showed weaker than expected job growth, this could lead investors to expect future rate cuts. This might boost bitcoin prices, as they seek out alternative assets, in anticipation of a more lenient monetary policy.

Kooner explained the inflows of spot bitcoin ETFs, which are preferred by macro traders, institutions and other financial players, could increase if “markets participants believe that economic uncertainty will lead the Fed to eventually cut rates.”

Kooner warned, however, that the size of the inflows would be affected by market sentiment in general and demand for risky assets.

However, the level of inflows will depend on market sentiment and appetite for risk. Kooner stated that recent flows have been quite low and there hasn’t been much “dip-buying”. If the job market is more resilient, bitcoin could face downward pressure if the probability of rate cuts in the near future diminishes.

Parikshit Miishra is the editor.