Bitfinex Report: The Overall Market Trend Will Depend on Macroeconomic Factors

ChainCatcher news, Bitfinex released a report indicating that Bitcoin failed to hold the key support level of $65,580, with a total liquidation amount of $1.16 billion in the past 24 hours, primarily affecting long positions. Despite the bearish market sentiment and significant declines in Japanese and U.S. stock markets, prices are still expected to rise slightly to the $55,000 region. However, the overall market direction will depend on macroeconomic factors.

Widespread market instability influenced by economic and political developments is affecting both cryptocurrency and traditional financial markets. Recent turmoil in the Japanese stock market and losses on Wall Street highlight the interconnectedness of global markets. The correlation between Bitcoin and traditional financial markets is increasing, and if the stock market continues to decline, Bitcoin is expected to face ongoing downward pressure.

Meanwhile, the U.S. labor market is showing clear signs of slowing down, with the unemployment rate rising to 4.3%, up from the historic low of 3.4% set in April 2023. This increase marks the highest unemployment rate since October 2021. Job growth has significantly slowed, with only 114,000 positions added this month. Despite these signs of market cooling, the June job openings report showed a slight decline, and the previous month's data revision indicates that the slowdown is steady but not alarming.

Against the backdrop of these labor market concerns, the Federal Open Market Committee (FOMC) decided to maintain the federal funds rate in the range of 5.25% to 5.5% on July 31, suggesting a possible shift towards easing its tightening monetary policy. Adding a positive aspect to the economic narrative, there was a surge in labor productivity in the second quarter, reflecting the ongoing strength and resilience of the economy despite challenges in the labor market.