According to U.Today, the U.S. non-farm payroll (NFP) data for July 2024 is expected to be revised by the Bureau of Labor Statistics (BLS) next week, potentially having a significant impact on the cryptocurrency market. While traders typically focus on standard economic indicators like FOMC meetings or CPI figures, this NFP revision could have a more profound effect on market dynamics, including cryptocurrency prices. Estimates from Goldman Sachs analysts suggest that between 600,000 and 1,000,000 jobs could be eliminated, indicating a much weaker labour market than previously thought. This could lead to substantial market movements.
If the revised NFP data shows a significant decline in employment, it could alter market expectations for Federal Reserve policy. Currently, the market anticipates slight reductions in interest rates for the upcoming year. However, a weaker-than-expected job market could prompt more aggressive rate cuts sooner than anticipated. This shift in expectations might lead to a sell-off in risky assets like stocks and cryptocurrencies, increasing volatility in the cryptocurrency market, particularly for Bitcoin.
Given the established relationship between cryptocurrencies and traditional financial markets, any significant changes in the latter are likely to impact the former. If Goldman Sachs' analysis of the revised NFP data proves accurate, Bitcoin may test lower support levels and potentially return to the $57,000 range.