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Bitcoin Could Plummet Below $15K If Expected U.S. Jobs Report Indicates ‘Elevated Employment Figures’

Bitcoin

thecryptobasic.com 02 September 2022 10:56, UTC
  
Reading time: ~3 m

Hedge Fund Predicts a Dip Below $15k for BTC In the Wake of a High U.S. Jobs Report

Bitcoin Could Plummet Below $15K If Expected U.S. Jobs Report Indicates ‘Elevated Employment Figures’, according to AlphaTrAI CIO.

Bitcoin (BTC) remains at the mercy of the bears, as the extensive Crypto Winter continues in its dominance. While a few analysts believe the bottom is already priced in, the CIO of AlphaTraI thinks the community hasn’t seen the worst of the markets yet. 

Max Gokhman, Chief Investment Officer at asset management firm AlphaTraI recently noted this in a Bloomberg interview. According to Gokhman, should the U.S. jobs report show heightened values, it could set up a domino effect in the markets which would ultimately send Bitcoin to a 2-year low. The NonFarm Payrolls (NFP) report is due Friday at 12:30 PM (UTC).

AlphaTrAI succumbed to the bear market as August reached a conclusion. The San Diego-based asset manager dumped its crypto holdings late-August amidst the Winter.

Expatiating on his assertion, Gokhman highlighted the expected response from the Federal Reserve to elevated employment figures. The Fed is likely to lean towards further interest rate hikes in response to higher employment rates. Additionally, this would not have the most favourable effects to both the traditional stock market and the crypto markets.

There was a time when macroeconomic conditions had little effect on Bitcoin’s price actions, but that time is no more. Recently, the correlation between BTC and traditional finance has grown, and this has subjected the asset to the damaging effects of bad macro. Gokhman highlighted this reality in his forecast.

Furthermore, he noted that the $20k support level for BTC is a significant point for the asset’s price movement. Gokhman predicts that the dread from a likely interest rate hike announcement from the Fed could send BTC below $20k. 

Should BTC break below the $20k support, a price free fall could ensue, pushing the asset further below. Gokhman believes the community could be seeing $15k at such a point.

“The true test for Bitcoin is if it can stay close to the $20,000 level after the NFP release … A hot labor market report and Fed rate hike bets might surge, and that could trigger downward pressure that eyes the summer lows” said Edward Moya, Market Analyst at OANDA, in a note to Bloomberg. Despite not predicting a dip to  $15k, Moya’s sentiments appear to align with Gohkhman’s.

Bitcoin’s Price Actions 

It is important to note that the last time BTC touched $15k was in November of 2020. The crypto community has already seen BTC’s response to reports of interest rate hikes, and it’s not pretty. Jerome Powell, Fed Chair, on August 26, noted that further interest rate hikes to combat rising inflation was a necessity. 

This comment knocked BTC off its $21,700 high on that day. The bearishness spilled into the weekend, as BTC went below $20k for the first time in August. The asset has since then bounced back, but consolidation at this zone highlights a very fragile support at $20k. BTC currently trades at $20,137 at the time of reporting, having gained by 0.96% in the past 24 hours.


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