The rise in the Bitcoin (BTC) price can be slowed due to the strong U.S. labor data as interest rate cut in a short-term has now reduced. The most recent payroll report in the United States of America (USA) indicated that the country created 147,000 jobs in June against its estimation of 110,000 jobs.
Moreover, the unemployment rate dropped by 4.1%, which beat the expected unemployment rate of 4.3%. This data on the labor market has changed the sentiment of traders, making it highly unlikely that the Fed will change the interest rates anytime soon in July.
The CME FedWatch tool reveals that the chances of the Federal Open Market Committee (FOMC) pressing the rate cut button on its July 30 meeting have dropped down to 4.7%.
Despite allowing a degree of flexibility in his recent address at the ECB Central Banking Forum earlier this week, Federal Reserve Chair Jerome Powell has stated there would be data-based reasoning behind decisions. Analysts are now of the view that the central bank would be careful and stick to its purpose to await the impact of increased tariffs and additional fiscal measures.
Additionally, the market is expecting the signing of the “Big Beautiful Bill” by President Donald Trump this coming Friday. This bill involves tax cuts and the raising of the debt ceiling, and this bill will revive more borrowing by the U.S. Treasury.
Arthur Hayes’ Opinion On Bitcoin
Arthur Hayes, co-founder of BitMEX and a crypto investor, added his voice to the bill in a recent blog post titled “Quid Pro Stablecoin.” Although Hayes supported the idea that Bitcoin is currently in a good position to beat its all-time high, he warned that it would be possible that the bull market may take a brief break.
In his explanation, he quoted that any attempts by the Treasury to replenish its General Account would initially dehydrate their risk assets like cryptocurrencies. Hayes remains bullish in the long run, even though this might cause some short-term trouble. He has doubled down on the idea that Bitcoin would hit a million dollars by 2028 due to the intervention of central banks, and falling confidence in the traditional financial systems.
Hayes also suggested that the U.S. Senate approved stablecoin bill, GENIUS Act, could transfer the ability to issue digital dollars not to commercial enterprises but to large financial institutions. He sees this as another way of concentrating the financial power.
At the time of writing, Bitcoin was exchanging hands at $109,747, a 2% increase in the last seven days. As of the latest trend, despite the macroeconomic issues, Bitcoin price could continue to hold above the key support level at $107,200. Thereafter, BTC price will possibly create another breakout in the near future to retest its all-time high (ATH) of $111,970.
Also Read: Bitcoin, Crypto Bills Next After Trump’s Big Beautiful Bill
