Bitcoin, the world’s leading cryptocurrency, is eyeing a potential rise to $115,000 by July if institutional buying persists and US job data comes in weaker than anticipated. Analysts from Bitfinex have indicated that a bullish scenario could unfold if the anticipated inflows from Exchange-Traded Funds (ETFs) continue, alongside strong institutional interest.
In the past month, Bitcoin has shown remarkable resilience, rallying from approximately $104,823 to a peak of $111,970 on May 22. Despite a recent pullback, market sentiment remains optimistic, buoyed by the performance of US spot Bitcoin ETFs, which saw $5.24 billion in inflows during May. The Crypto Fear and Greed Index currently reflects a sentiment score of 57, categorizing the market as experiencing ‘Greed.’
The upcoming US jobs report, set to release on June 6, is seen as a critical indicator for Bitcoin’s future trajectory. A stronger-than-expected labor report could delay potential interest rate cuts by the Federal Reserve, thereby strengthening the US dollar and placing downward pressure on Bitcoin’s price. Conversely, a weaker jobs report could ignite a positive reaction in the crypto market, encouraging the Fed to consider reducing interest rates, which would be bullish for Bitcoin.
- If the jobs report reflects a robust labor market, analysts predict Bitcoin could test support levels around $102,000 or lower.
- Bitfinex analysts pointed out that if the market experiences downward pressure due to strong job data, Bitcoin’s price could dip below the psychological level of $100,000 reached last in early May.
- The broader market speculation indicates that June could still be pivotal for Bitcoin, with many analysts previously suggesting that new all-time highs were achievable this month.
In conclusion, the dual dynamics of institutional interest and job market performance are central to Bitcoin’s outlook as we move into July. It remains to be seen how these factors will interplay and shape the cryptocurrency landscape in the coming weeks.
