Bitcoin derivatives markets show less appetite for bullish positions. Is BTC price at risk?
Bitcoin (BTC) briefly flirted with the $72,000 resistance on June 7, but its intraday gains quickly evaporated, sending the cryptocurrency down to $69,000. More concerningly, two indicators, including exchanges’ top traders long-to-short metric, suggest that Bitcoin investors are becoming less optimistic. Is the Bitcoin bull market over, at least for the short term?
The S&P 500 index reached a new intraday all-time high on June 7 after the United States reported a 272,000 increase in nonfarm payroll jobs in May, significantly surpassing the previous month’s figure of 165,000 jobs. A strong labor market is generally beneficial for credit and consumption, and thus for listed companies. People are more likely to spend when the job market is resilient, regardless of the cost of capital.
The relationship between job creation and corporate earnings is particularly favorable, especially since the U.S. Bureau of Labor Statistics reported that wages increased by 0.4% in May from the previous month, with the participation of prime-age workers, ages 25-54, reaching its highest level in 22 years at 83.6%. Despite the decline in consumer sector U.S. stocks today, the tech sector more than compensated for the move.