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Bitcoin’s Price Rally Fueled by Positive US Labor Market Report and Institutional Interest

Picture Source: BeInCrypto

Bitcoin (BTC) recently saw a 2% price increase following the release of the September non-farm payrolls report by the US Bureau of Labor Statistics. This significant on-chain indicator suggests that Bitcoin is well-positioned for bullish price action in the coming weeks. This article explores the impact of the non-farm payroll report on Bitcoin’s price and the role of US-based institutional investors in influencing the market.

Positive Impact of Non-Farm Payroll Report

On October 6, the US Bureau of Labor Statistics published the non-farm payroll figures for September 2023, revealing an increase of 336,000 jobs. This exceeded the consensus expectation of 170,000, according to TradingEconomics. Non-farm payrolls (NFP) data is a crucial economic indicator in the United States and can influence various financial markets, including Bitcoin. A better-than-expected NFP report typically indicates a strong job market and improved economic health.

This positive report is likely to boost the confidence of major Bitcoin investors, both in the USA and internationally, potentially leading to increased investment in BTC.

US Whales Accumulating BTC

The NFP report appears to have had a positive impact on institutional investors’ confidence in Bitcoin. CryptoQuant’s Coinbase Premium Index, which measures the percentage difference between Bitcoin prices on Binance and Coinbase Pro spot trading platforms, reveals that US-based whales have been increasing their buying pressure on BTC.

The BTC Coinbase Premium Index has shown positive values throughout the week, reaching 0.92 as of October 6. Binance is a global leader in BTC retail trading, while Coinbase Pro primarily serves US-based entities and high-net-worth investors seeking a regulated trading environment. A positive value for the Coinbase Premium Index indicates that US investors are exerting buying pressure on BTC.

Historical data shows that Bitcoin’s price often rallied within days after the BTC Coinbase Premium entered positive territory. This pattern was observed on August 29 and September 20, leading to notable price gains.

BTC Price Prediction: $30,000 Target

The correlation between Bitcoin’s price and the trading activity of US-based whale investors suggests that BTC bulls may aim to push the price toward the $30,000 mark. The Global In/Out of Money Around Price (GIOM) data, which displays the entry price distribution of current Bitcoin investors, also supports this prediction.

If BTC bulls can surpass the initial resistance at $29,300, it could pave the way for a rally toward $30,000. However, if early profit-taking occurs among those who bought at an average price of $29,300, it might lead to a temporary pullback.

On the downside, a reversal below $25,000 could invalidate this bullish scenario. However, strong support is seen around the $26,613 level, where 635,000 addresses purchased 2.42 million Bitcoin. If these holders maintain their positions, it could act as a significant support wall.

Read More: Avalanche’s AVAX Thriving in a Sluggish Crypto Market

Conclusion

Bitcoin’s recent price rally, fueled by a positive US Labor Market report and institutional interest, indicates the resilience of the cryptocurrency market. The correlation between the BTC Coinbase Premium and price movements suggests that US-based whale investors may play a crucial role in pushing Bitcoin toward the $30,000 range. However, investors should remain cautious as market dynamics can change rapidly, and price predictions are subject to various factors and uncertainties.

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