- A stronger-than-expected US job market is weighing on crypto.
- Traders now look to US inflation data and a Federal Reserve policy meeting on Wednesday.
Bitcoin wobbled again on Monday, following the euro and risk assets lower amid gains by far-right parties in European Parliament elections.
French President Emmanuel Macron called a snap national election, adding to the political uncertainty.
“The market is seeing political risk premia from these election results,” Neil Wilson, chief analyst at Markets.com, said in a note to clients.
“There are also questions about support for Ukraine, and lots else. You can see why market reaction is to kneejerk down.”
Bitcoin slumped on Friday after non-farm payrolls in May beat analysts’ estimates, adding 272,000 new jobs. The report dampened expectations that the Federal Reserve will cut rates this year.
“Risk sentiment was always going to be a bit soft after the nonfarm payrolls on Friday,” Wilson said.
Lower interest rates are typically bullish for risk assets like stocks and cryptocurrencies.
Wednesday will see crucial US inflation data along with a Fed policy meeting that may flag whether a rate cut is on the cards.
Higher-than-expected inflation data reduces the likelihood of a rate cut, adding to Bitcoin’s woes.
But some believe a Fed pivot is already a done deal.
BitMEX co-founder Arthur Hayes last week pointed to rate cuts from the Bank of Canada and the European Central Bank as a sign monetary policy in the US will soon loosen.
“The trend is clear,” Hayes said. “The crypto bull is reawakening, and is about to gore the hides of profligate central bankers.”
Crypto market movers:
- Bitcoin is down 0.4% over the past 24 hours to $69,302.
- Ethereum is down 0.6% to $3,669.
What we are reading:
- Wife of Binance exec ‘expected a lot more’ from US as husband languishes in Nigerian prison — DL News
- New York Attorney General Sues Promoters Over $1B Crypto Pyramid Schemes — Milk Road
- Loopring’s ‘Guardian’ Smart Wallets Hacked for $5 Million — Unchained
- Crypto Funds See $2B Inflows; Bitcoin Remains Primary Focus — Milk Road
- AI use in crypto scams not yet mainstream, but increasing, Elliptic report says — DL News
Tim Craig is a DeFi Correspondent at DL News. Got a tip? Email him at tim@dlnews.com.