Bitcoin Could Plummet Below $15K If Expected U.S. Jobs Report Indicates ‘Elevated Employment Figures’: Bloomberg

Hedge Fund Predicts a Dip Below $15k for Bitcoin In the Wake of a High U.S. Jobs Report.

Bitcoin Could Plummet Below $15K If Expected U.S. Jobs Report Indicates ‘Elevated Employment Figures,’ according to AlphaTrAI CIO.

Bitcoin (BTC) remains at the mercy of the bears as the extensive Crypto Winter continues in its dominance. While a few analysts believe the bottom is already priced in, the CIO of AlphaTraI thinks the community hasn’t seen the worst of the markets yet. 

Max Gokhman, Chief Investment Officer at asset management firm AlphaTraI, recently noted this in a Bloomberg interview. According to Gokhman, should the U.S. jobs report shows heightened values, it could create a domino effect in the markets, ultimately sending Bitcoin to a 2-year low. The Nonfarm Payrolls (NFP) report is due Friday at 12:30 PM (UTC).

AlphaTrAI succumbed to the bear market as August reached a conclusion. The San Diego-based asset manager dumped its crypto holdings in late August amidst the Winter.

Expatiating on his assertion, Gokhman highlighted the expected response from the Federal Reserve to elevated employment figures. The Fed will likely lean towards further interest rate hikes in response to higher employment rates. Additionally, this would not have the most favorable effects on both the traditional stock market and the crypto markets.

Max Gokhman tells Bloomberg:

“Elevated employment figures would raise the odds of more jumbo interest rate increases by the Federal Reserve, jeopardizing the $20,000 level at which Bitcoin has been holding firm since a mid-August selloff.”

There was a time when macroeconomic conditions had little effect on Bitcoin’s price actions, but that time is no more. Recently, the correlation between BTC and traditional finance has grown, which has subjected the asset to the damaging effects of the bad macro. Gokhman highlighted this reality in his forecast.

Furthermore, he noted that BTC’s $20k support level is a significant point for the asset’s price movement. Gokhman predicts that the dread from a likely interest rate hike announcement from the Fed could send BTC below $20k. 

Should BTC break below the $20k support, a price-free fall could ensue, pushing the asset further below. Gokhman believes the community could be seeing $15k at such a point.

“The true test for Bitcoin is if it can stay close to the $20,000 level after the NFP release … A hot labor market report and Fed rate hike bets might surge, and that could trigger downward pressure that eyes the summer lows,” said Edward Moya, Market Analyst at OANDA, in a note to Bloomberg. Despite not predicting a dip to  $15k, Moya’s sentiments appear to align with Gohkhman’s.

Bitcoin’s Price Actions 

It is important to note that the last time BTC touched $15k was in November of 2020. The crypto community has already seen BTC’s response to interest rate hikes reports, which is not pretty. Jerome Powell, Fed Chair, on August 26, noted that further interest rate hikes to combat rising inflation were necessary. 

This comment knocked BTC off its $21,700 high on that day. The bearishness spilled into the weekend, as BTC went below $20k for the first time in August. Since the asset has bounced back, consolidation at this zone highlights fragile support at $20k. BTC currently trades at $20,137 at the reporting time, gaining by 0.96% in the past 24 hours.