On Bitstamp, data from TradingView and Cointelegraph Markets Pro showed a $500 hourly candle decline.
When U.S. nonfarm payrolls for January came in at almost twice estimates—353,000 vs 185,000—Bitcoin saw an instant reaction.
As the data revealed that a restrictive economic policy was not as detrimental to the economy as previously believed, sellers took the initiative. Thus, interest rates may continue to rise, depriving risky assets, such as cryptocurrencies, of liquidity.
The Federal Reserve decided unanimously on January 31 to maintain rates at their historical levels, despite Fed Chair Jerome Powell’s efforts to debunk speculations that reductions may occur in March.
The unemployment numbers supported that story, as investors discounted the likelihood of a cut before May.
The odds of the shift happening in March were 17.5% as of the time of writing compared to 45% earlier in the week, according to data from CME Group’s FedWatch Tool.
GBTC Outflows Experience a New Decline.
Withdrawals from the Grayscale Bitcoin Trust (GBTC), one of the newest spot Bitcoin exchange-traded funds (ETFs), provided some respite to enthusiasts of the cryptocurrency.
According to statistics from crypto intelligence firm Arkham, flows to custodian Coinbase on the day were 4,400 BTC at the time of writing. This is significantly fewer than the 25,000 peak witnessed in January and lower than prior days.
Popular trader Daan Crypto Trades said, “Total net inflows were +$38M yesterday so another day of inflows although small,” as part of an X post that included the data.
