What happened?
Bitcoin price appears to be heading towards $108K amidst signs of a cooling economy. Weak U.S job growth and increasing unemployment rates have led to Bitcoin’s volatility creating a bearish daily candle. After the disappointing jobs report, the price rose to a 9-day high before settling below its daily open.
Who does this affect?
This impacts Bitcoin investors and the wider crypto market. Large investors have shown signs of risk aversion, with whale reserves falling drastically in the last 30 days. Additionally, the growth of Bitcoin accumulation by corporate institutions has decelerated significantly, putting added pressure on Bitcoin’s prices.
Why does this matter?
The current economic climate could lead to the Federal Reserve shifting sooner, impacting interest rates and subsequently, the cryptocurrency market. Furthermore, the trends indicate that there could potentially be further price drops for Bitcoin, affecting traders, investors, and the larger crypto market. In the longer term, however, there is optimism with some experts citing historical trends and market structures projecting a bullish future for Bitcoin.