The Upcoming Jobs Report Could Help Bitcoin Get Bigger

Assets like bitcoin and Ethereum continue to show signs of recovering from the bearish market conditions traders and investors witnessed last year.

The Many Bitcoin Developments Set to Occur

Not long ago, the U.S. government seized more than $215 million in bitcoin taken from the Silk Road dark web market, started by Ross Ulbricht. While the man in charge may be in prison, the enterprise continues to operate as though nothing has changed.

Now, it looks like there’s going to be another $1 billion in BTC sold over the next year, and many analysts think this could have huge effects on the price of bitcoin and where the asset goes within the next 12 months. Alex Kuptsikevich – an FX Pro senior market analyst – explained in a recent interview:

The former cryptocurrency is stuck in local highs, above which it has been unable to consolidate since March 19. This prolonged consolidation sets the stage for the next big move. The resolution of this consolidation is likely to be linked to the market’s reaction to Friday’s non-farm payrolls. Technically, a pullback to the $27,000 level to correct the rally of March 10 is more likely at the moment.

In addition to the bitcoin sale occurring later in the year, the annual jobs report will be emerging soon. Usually, when this document becomes available for all to read, the country gets an idea of the state of the economy as when jobs are added, one can assume that things are moving up, whereas if job counts are lower than expected, it likely means the economy isn’t in a great state.

Nobody doubts that the economic conditions of America are not in fantastic shape right now. Inflation is still running rampant, and the Fed has made it clear that while 2023 was initially going to be a time in which interest rates either fell or remained in place, they’re likely to continue going up unless inflation decides to calm down outright, which the Fed doesn’t think will occur just yet.

 What Will the Jobs Report Do?

Putting all this aside, if the job report is high enough, this could bear positive outcomes for bitcoin and other digital currencies and cause them to spike higher. Many analysts are crossing their fingers and hoping for the best. Yuya Hasegawa – a crypto market analyst at Bit Bank in Tokyo – said:

 With concerns for the U.S. banking system subsiding, the market’s concern is yet again on the Fed’s rate hike decision in May. Bitcoin could retest $29,000, but it needs to close above that level to call it a ‘breakout,’ otherwise, it could be another ‘fake-out.’

While things can always be much better, bitcoin has already risen by 70 percent from where it was at the end of 2022, arguably the worst year on record for the asset.

Tags: bitcoin, jobs report, Silk Road