Next week, the U.S. non-farm payroll (NFP) data for July 2024 is anticipated to be revised by the Bureau of Labor Statistics (BLS), which could have a revolutionary effect on the cryptocurrency market. Although the majority of traders concentrate on standard economic indicators such as FOMC meetings or CPI figures, the impending NFP revision could have a more significant effect on the markets, including cryptocurrency prices.
Between 600,000 and 1,000,000 jobs could be eliminated, according to estimates from Goldman Sachs analysts, who expect a significant downward revision of the preliminary NFP data. This revision may indicate that the labor market was far weaker than previously thought, which could cause the market to move significantly.
Such a revision would have extensive consequences. Market expectations for Federal Reserve policy would probably change if the updated NFP data reveals a significant decline in employment. At present, the market is factoring in slight reductions in interest rates for the upcoming year. However, more aggressive rate cuts earlier than anticipated could result from a weaker-than-expected job market.
As investors reassess their plans, this change in expectations may cause a sell-off in risky assets like stocks and cryptocurrencies. This might cause volatility in cryptocurrencies like Bitcoin to rise. Because of the well-established relationship between cryptocurrencies and traditional financial markets, any notable changes in the latter are likely to have an impact on the former. If Goldman Sachs’ analysis of the revised NFP data turns out to be accurate, Bitcoin may test lower support levels and even go back to the $57,000 range.
