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Bitcoin’s next big move hinges on the U.S. labor market data, says analyst

Author: Content Editor
Bitcoin's next move may be influenced by upcoming U.S. labor market data, according to quantitative analyst Benjamin Cowen. He suggests that if the unemployment rate stays within the range of 4.1%-4.2%, Bitcoin could follow last year's trend and rally into February and March. However, if the rate is too high or too low, it could create uncertainty and impact Bitcoin's price action. Recent labor market reports have shown positive job growth, but hiring has slowed, indicating a possible cooling of the labor market. If this trend is confirmed, it could raise expectations for monetary easing, which is typically favorable for risk assets like Bitcoin. The U.S. Federal Reserve's recent decision to keep its benchmark interest rate unchanged also plays a role in Bitcoin's outlook. Additionally, declining Treasury yields benefit Bitcoin by easing financial conditions, but a stronger-than-expected jobs report could push yields higher and make risk assets less attractive. Bitcoin is currently at a critical juncture and a stable yet cooling labor market could lead to a rally, while significant deviations in either direction could introduce volatility.

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