US Non-Farm Payrolls Data Could Impact Bitcoin Price: Analysts

• Bitcoin price has been in a tight range in the past few months, between last month’s low of about 16,285 and a high of 18,455.
• The next key catalyst for the BTC price will be the upcoming US non-farm payrolls data. Economists surveyed by Reuters expect the economy to have added more than 200k jobs and the unemployment rate to remain at 3.7%.
• If the numbers are accurate, it means that the economy added millions of jobs in 2022 and wages held steady in December.

The past few months have seen Bitcoin price remain in a consolidation phase. BTC/USD has been trading between last month’s low of about 16,285 and a high of 18,455. This represents a drop of more than 22% from the highest level in November. The next key catalyst that could influence the Bitcoin price is the upcoming US non-farm payrolls (NFP) data.

Economists surveyed by Reuters believe that the US economy added more than 200k jobs to the workforce while the unemployment rate held steady at 3.7%. If this is accurate, it means that the economy added millions of jobs in 2022. Furthermore, the data is also expected to show that wages held steady in December, with the average hourly earnings rising by 5.0%. The participation rate is also expected to remain at 62.1%.

These numbers come a day after ADP published strong jobs numbers, showing that the US economy added 235k jobs. It is important to note that the US Federal Reserve has a dual mandate to ensure the inflation rate and unemployment rate remain steady. In 2022, the bank hiked rates by 450 basis points. The non-farm payrolls data will therefore come as a key indicator of the economic health of the US.

If the numbers are strong, it could signal a strong economy and could be bearish for Bitcoin. Investors could move away from BTC and into other more profitable assets such as stocks. On the other hand, if the numbers are weak, it could be bullish for Bitcoin. Investors could move into the safe haven asset in an effort to protect their investments from a weak economy.

Overall, the upcoming US non-farm payrolls data will be a key indicator of the economic health of the US and will have a direct impact on the Bitcoin price. It is therefore important for investors to keep an eye on this data in order to make informed investment decisions.