Bitcoin Rises as U.S. Jobs Report Approaches

As Bitcoin’s price begins to see an uptick, climbing to a peak of $61,600 in the early hours of European trading, market participants anticipate the release of the U.S. September jobs report by the Bureau of Labor Statistics. This development contributes to growing speculation that the recent Bitcoin sell-off could be nearing its end.

Currently, the price of Bitcoin sits at approximately $61,300, reflecting a 1% increase reported by CoinGecko. Analysts speculate that this upcoming data may significantly influence the Federal Reserve’s policy decisions, which could, in turn, impact the broader cryptocurrency markets.

Ethereum, another major player in the crypto space, has also shown positive momentum, increasing by 1.1% to a value of $2,375. Despite this, weekly data reveals that both Bitcoin and Ethereum have experienced declines of 7% and 11%, respectively, highlighting the market’s recent volatility.

Scheduled for release at 8:30 AM ET, the anticipated September jobs report could indicate the Federal Reserve’s approach to interest rate adjustments in the near future. Economists forecast a slight dip in nonfarm payroll additions, from 142,000 in August to 140,000 in September, while unemployment rates are anticipated to remain stable at 4.2%, per ananalysis.

Impact of Federal Reserve Decisions on Bitcoin

The Federal Reserve’s reaction to these employment figures will likely influence the crypto market’s trajectory, as analysts suggest a steady economic scenario may lead to a more cautious approach to rate reductions—an environment that traditionally bodes well for crypto price rebounds.

Is the Bitcoin Sell-Off Concluding?

In the midst of ongoing market fluctuations, optimistic predictions from CryptoQuant suggest that Bitcoin could be approaching a short-term recovery. The renewed interest from U.S.-based investors, evidenced by the Coinbase Premium Index, points to a strengthening demand, potentially signifying the end of the sell-off.

Cryptocurrency markets often witness rallies following corrections like those seen at the start of October, where Bitcoin retraced from $66,000. According to CryptoQuant’s analysis, these patterns could herald a bullish pivot for Bitcoin.

On a related note, ETF trading shows a mixed picture, reflecting the market’s current uncertainty. Although U.S. Bitcoin spot ETFs recorded three consecutive days of net outflows totaling $54.1 million, (IBIT) gained $35.9 million in inflows, showcasing persistent investor interest in Bitcoin despite widespread selling pressures.

Simultaneously, Ethereum ETFs recorded a total net outflow of $3.1 million, signaling overall cautious sentiment towards primary cryptocurrencies.

Signs of Market Recovery to Watch

Insights from 10x Research propose that the current Bitcoin correction could soon wind down. They highlight a pattern of early-month price reversals between the 5th and 7th day, anticipating an upcoming inflection point.

While sluggish ISM manufacturing data and employment concerns have pressured the market, the possibility of solid U.S. economic growth could prompt the Federal Reserve to modulate rate cuts more gradually, fostering an environment conducive to a crypto market resurgence.

Institutional investors, particularly over-the-counter desks, have been pivotal in recent Bitcoin price trends, their selling contributing to the drop from $65,000. Nonetheless, as these desks are rebuilding their balances, selling pressures seem to be diminishing, further supporting the potential end of the sell-off.

Moreover, investor sentiment remains relatively stable, with low implied volatility and scant demand for put options, indicating limited concern for dramatic downturn risks. 10x Research correlates this with a historical trend where Bitcoin futures liquidations frequently signal lows, possibly suggesting that the current sell-off might be drawing to a close.