After the announcement of the non-farm payroll data in the United States tonight, the price of Bitcoin may tend to stabilize or further decline

Jag Kooner, the head of derivatives at Bitfinex, stated that the Non-Farm Payroll (NFP) data released on Friday (20:30 Beijing time) could potentially stabilize Bitcoin prices or cause them to fall further in a worst-case scenario. The cautious tone of the Federal Reserve meeting minutes indicates that clearer economic data is needed before interest rates can be cut. This may help keep Bitcoin prices stable or lead to a slight decline in the worst case.

Kooner's analysis suggests that investors might see a lack of immediate rate cuts as an ongoing sign of economic uncertainty, which could reduce their risk appetite for volatile assets like Bitcoin. In terms of labor market health, slowing job growth indicates cooling in the labor market, consistent with Fed observations about slowing economic activity. However, a steady unemployment rate shows that despite slower job growth overall employment remains stable. Therefore, NFP reports leave room for two scenarios: First one being weaker than expected job growth which could increase expectations for future rate cuts and possibly boost Bitcoin prices as investors seek alternative assets under loose monetary policy expectations; Conversely in second scenario if labor market proves more resilient then it would put downward pressure on Bitcoin.