Recent Data May Not Be Good for Bitcoin: Now More Sensitive to FED Decision! - Coin Bulletin

Douro Labs CEO Mike Cahill stated that the Non-Farm Payroll Report released in the US will influence the Fed's upcoming interest rate decision and could directly reflect on the price of Bitcoin (BTC).

After the private sector created 62 thousand new jobs this week, remaining low compared to March, Cahill had stated that if the data to be announced on Friday is weak, the likelihood of the Fed cutting interest rates would increase. According to the latest data released, the US Non-Farm Payroll came in above expectations at 177 thousand (expectation: 138 thousand).

Cahill used the statement, "The weakness in labor data may support Bitcoin prices by increasing expectations that the Fed will cut interest rates." Cahill also emphasized that Bitcoin is no longer just a speculative asset and has become a macroeconomic indicator that is sensitive to interest rates and traded globally.

Bitcoin has become sensitive to interest rate decisions

According to Mike Cahill, institutional investors evaluate Bitcoin as a different category from traditional risk assets and closely monitor central banks' interest rate decisions.

Markets do not expect an interest rate cut at the Fed meeting scheduled for May 6-7. According to CME FedWatch data, the probability of interest rates remaining unchanged at this meeting is indicated as 93%. However, Cahill stated that investors have already started to reflect potential interest rate cuts that could occur in the future in the Bitcoin price.