Bitcoin (BTC) price recorded a marginal surge on Friday after dropping below the vital $20k level. However, it is expected that BTC prices could drop ahead of the announcement of the crucial US job report.
US job data to affect Bitcoin
According to the report, the latest US jobs data would be stronger than expected. This could send collapse signs towards the crypto market. The increased selling pressure could lead Bitcoin prices to drop as low as $15k.
Max Gokhman, CIO at AlphaTrAI suggested that elevated employment data would easily raise the odds of more interest rate increases by the Feds. This can surely break the vital $20k price level. However, AlphaTrAI went on to dump most of its digital assets holding the previous month. His hedge fund last month transfers a huge chunk of its crypto portfolio into cash.
In an interview with Bloomberg, Gokhman said that Bitcoin’s correlation with macro sentiment is high right now. The $20k price level is very crucial at this moment. However, if it breaks then the market will a bigger drop.
Bitcoin went on to trade around the $15k price level around two years ago when the global market was trading at the initial stages of the pandemic. However, it went on to peak at $69k in November 2021. Since then the market is trading under pressure due to increased regulatory policies.
Can BTC hold the ground?
However, BTC is trading at an average price of $20.08k, at the press time. Meanwhile, its 24 hour trading volume has dropped significantly. Bitcoin prices have dropped by around 6% over the past 7 days.
Meanwhile, Gokhman mentioned that if Bitcoin could hold the $20k price level then it could send some positive sentiments in the market. This will imply that the market has found a floor now. However, some traders are worried, thus paying a premium in the options market for protection.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.