Inflation concerns and solid employment statistics hinder the rise of Bitcoin | coindesk JAPAN

Bitcoin (BTC) prices plunged May 31 after senior Federal Reserve (Fed) officials reiterated their concerns over the labor market and inflation.

Governor Mester opposes halting rate hikes

“We don’t see a compelling reason to stop[rate hikes]which is to wait until we have more evidence to decide what to do,” said Cleveland Fed President Mester. Told the Times.

Despite some positive signs in recent months, the Fed said it needed to do more to keep inflation under control.

Mester is an alternate member of the Federal Open Market Committee (FOMC) and can vote on rate hikes only if there are vacancies among the 12 voting members. Known as one of the most hawkish of the Fed, these comments weren’t all that surprising, but they still contributed to Bitcoin’s price dropping about $500 to $27,000 on the morning of March 31. became.

Meanwhile, the Current Employment Trends Survey (JOLTS) in April showed that the number of job openings increased to 10.1 million, exceeding the forecast of 9.375 million. It supports Governor Mester’s assertion that the labor market remains strongly tight.

Bullish market players

Not all market participants are shaken by the price drop.

Mikkel Morch of cryptocurrency (crypto) fund ARK36 said bits such as increased adoption and institutional interest despite current macroeconomic concerns. We believe that the fundamental bullishness of the coin will suggest a higher price.

“Our stance on Bitcoin at ARK36 remains bullish long-term, despite continued short-term volatility due to continued tightening Fed policy and global economic uncertainty,” Moch said. ‘ said.

Michael Silberberg of crypto hedge fund Alt Tab Capital echoed that sentiment, noting that institutional investors often embrace crypto market volatility. “It’s a very volatile market, and that’s one of the things that attracts institutional investors in the first place,” he said.

Focus on non-farm payrolls

In the next few days, the focus will be on how well the Bitcoin price will settle near $27,000, which coincides with the 20-day moving average. A break below this level could bring it closer to the lower end of the Bollinger Bands at $26,300.

The next data to watch is the May non-farm payrolls, which will be released on June 2nd. 180,000 job additions are expected, but higher than expected could have a bearish impact on Bitcoin price.