Bitcoin, Ethereum, Dogecoin Drop Amid Mixed Signals From US Labor Market

Major cryptocurrencies traded in the red on Sunday evening amid mixed signals from the U.S. labor market.

What Happened: In June, nonfarm payrolls (NFPs) increased by 209,000, as reported by the Bureau of Labor Statistics. This figure fell short of economists’ expectations of 225,000, indicating a decrease from May’s revised increase of 306,000. 

These numbers suggest a weakening of employment momentum in the previous month.

This lower-than-expected reading comes on the heels of an impressive ADP National Employment Report, which showed an astounding 497,000 job gains in June.

JPMorgan managing director Nikolaos Panigirtzoglou’s report highlighted a potential drawback for the crypto markets. 

According to the report, a spot Bitcoin exchange-traded fund (ETF) may not have the transformative effect many anticipate in the crypto space. 

Panigirtzoglou points to the underwhelming interest in spot Bitcoin ETFs in Canada and Europe as a reference, suggesting that even in the US, its impact might be limited.

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At the time of writing, the global crypto market capitalization stood at $1.17 trillion, a decrease of 1.03% over the last day. 

US Stock futures showed slight gains on Sunday evening in anticipation of upcoming inflation data and the start of the second-quarter earnings season. Nasdaq 100 futures rose by 0.01%, while S&P 500 futures saw an increase of approximately 0.1%.

See More: Best Crypto Day Trading Strategies

Analyst Notes: “Markets are consolidating. Areas I’d be interested in potential longs are identified at greater than $29,500 for Bitcoin or flip $30,800. Relatively simple, but I think that one’s Bitcoin starts to show strength, Altcoins vastly can return back to equilibrium,” wrote Michael Van de Poppe, crypto analyst.

Crypto analyst DonAlt sheds light on the challenges faced by Bitcoin as it aims to surpass a crucial psychological level.

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DonAlt emphasizes that his observations about the S&P 500 resistance date back to a month ago when the index reached $4,300 – $4,200. Recognizing the potential impact on traditional markets, he highlights the risk of a slowdown. 

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“So if you’re struggling after having such a big catalyst like the ETF application from BlackRock, if that is counteracted by the S&P just going risk off a little bit and then you have some more Binance problems, I could see that be quite explosive and quite bad…It’s taking too long. We have a bunch of risky things in the market, and the S&P is at resistance.” 

Based on data from Santiment, it appears that Bitcoin’s sharks and whales continue to show strong accumulation, despite prices hovering around the $30.000 to $31,000 range. Since June 17th, there has been an increase of 71,000 coins, totaling a value of $2.15 billion, in the wallets of 10 to 10,000 BTC addresses.