- Bitcoin quietly started the third quarter, as its price fluctuated in a small range of $ 6.
- Carefully lateral movement is ahead of the US Non-Farm Employment (NFP) report released on Thursday.
- Observers are expecting at least 3 million jobs to recover in June, news that can help S&P 500 and Bitcoin continue to move up to the new week.
On Wednesday, the price of Bitcoin rose moderately, and pointed out that the cryptocurrency will begin the third quarter with a cautious note after closing the previous one at a rate of more than 40 percent.
The BTC / USD exchange rate rose 0.16 percent to $ 9,151, hoping the Federal Reserve will continue its incentive program after the end of July. However, since traders were evaluating the number of increasing COVID cases and their impact on the US economy, the escalation could not turn into an extended upward movement.
Bitcoin maintaining support above $9,100. Source: TradingView.com
Bitcoin has so far been optimistic to the Fed's decision to buy Treasury bills and mortgage-backed securities, injecting $ 3 trillion. The cryptocurrency increased more than 150 percent from the low of mid-March after the intervention of the central bank.
As the Ministry of Labor published the Non-Agricultural Payroll report on Thursday, the bullish behavior seems to continue in July.
Recovery in Jobs
Bitcoin and the US stock market focus on Automatic Data Processing employment change in June.
Observers noted that the largest US payroll company expects to employ 3 million Americans in June after being dismissed from 2.76 million in May and 19.557 million in April. Recovery in employment data may encourage the Fed to follow the wait and watch approach, at least by the end of July.
It is also the result of a summary of economic projections (SEP). “A general economic recovery expectation that started in the second half of this year."
– DeepMacro (@DeepMacro) June 30, 2020
Futures affiliated to the S&P 500 responded as cautiously to the US NFP version as Bitcoin, and dropped 0.42 percent of the New York opening bag on Wednesday. FXStreet analyst Joseph Trevisani, benchmark index will benefit from a positive employment report, even so.
This leaves a short term uptrend to Bitcoin. The downstream corrector of the cryptocurrency has recently slowed down in the $ 9,000- $ 9,100 range.
Meanwhile, an increase in S&P 500, a market that poses a positive correlation with Bitcoin, could cause traders to push the crypto price up to a new range.
Fed chief Jerome Powell warned the economy on Tuesday to expect a full-fledged recovery. He pointed to the resurrection in COVID cases, which sent states in California and Florida to a new lockout phase.
Powell confirmed, however, that his office expects to offer additional aid packages for “certain industries” if the situation so requires.