Bitcoin (BTC) has mostly given up on yesterday’s modest bounce, returning to $61,900 during the US morning hours, down 0.8% over the past 24 hours.
In a few minutes, the US Nonfarm Payroll Report for May will be out. While the interest rate outlook has taken a backseat to other concerns amid this week’s cryptocurrency crash, this morning’s data will be significant nonetheless.
Markets have turned from the certainty of rate cuts this year to rate hikes as inflation has risen, partly due to rising energy costs. About the only thing that could change this outlook for interest rates would be a significant slowdown in the labor market.
If the interest rate outlook turns 180 degrees again (this time back to cuts), it could prove to be a tailwind for the crypto markets.
