Bitcoin remains constrained below the USD 115,000 mark as investors remain cautious after the asset retreated from its peak and US economic data fuelled uncertainty.
Weak US nonfarm payroll data, coupled with downward revisions to prior employment figures, have amplified concerns over the economy’s trajectory.
The unexpected dismissal of the Bureau of Labor Statistics head has further unsettled markets by raising concerns about political interference.
Although increased expectations of Federal Reserve rate cuts may provide longer-term support, the near-term environment continues to weigh on Bitcoin’s momentum.
Additionally, Bitcoin ETFs saw significant outflows totalling USD 812 million on Friday. Further outflows could drag the crypto market to the downside. However, corporate treasuries continue to accumulate Bitcoin. Thus, Japanese firm Metaplanet recently increased its holdings to 17,595 BTC and announced plans to raise USD 3.7 billion for further acquisitions.
This persistent institutional engagement provides a measure of stability, potentially limiting downside risks in the medium term. Investors could turn to new US economic data to gauge the direction of the economy. Any surprises could fuel volatility in the crypto market.
