Bitcoin rally, weaker than expected... $80,000 recovery market not saved by employment figures

▲ Bitcoin (BTC) decline/AI generated image

The Bitcoin (Bitcoin, BTC) rally lost momentum in the face of macroeconomic barriers. With the US April employment figures failing to provide a signal for a market-shocking turnaround, the geopolitical tensions surrounding Iran combined with outflows from Bitcoin spot ETFs cooled the rebound.

According to The Block, a cryptocurrency specialized media outlet, on May 8, Bitcoin's upward trend did not secure clear breakthrough momentum even after the release of the April employment figures. The market was watching to see if slowing employment could fuel expectations for the Federal Reserve's monetary policy easing, but these figures were insufficient to break through the macroeconomic burden weighing on the cryptocurrency market.

Bitcoin had raised recovery expectations surrounding the $80,000 mark during its recent rebound. However, investors judged that a strong resurgence in risk asset preference would be difficult with employment figures alone. With uncertainties remaining regarding inflation, interest rates, and economic trends, Bitcoin's buying momentum failed to gain further conviction.

Geopolitical variables also pressured the market. The Block reported that Iran-related tensions were one of the main reasons for the cooling of the Bitcoin rally. Instability in the Middle East acted as a factor limiting risk asset investment sentiment, and Bitcoin, after a short-term rebound, showed a trend of reacting sensitively to macroeconomic variables again.

Outflows from Bitcoin spot ETFs were also identified as a factor hindering the upward trend. Spot ETFs have recently been considered a key channel for confirming institutional demand in the Bitcoin market. However, if outflows occur, it can be read as a signal that the buying base has weakened in the short term. This cooling of the rally shows that ETF flows still directly influence Bitcoin price sentiment.

This trend reconfirmed that Bitcoin has become a market that does not move solely based on internal cryptocurrency supply and demand. Employment figures, geopolitical tensions, and ETF fund flows are simultaneously shaking the price direction. While the Bitcoin rally left recovery expectations, The Block assessed that the April employment figures were not enough to break through the market's macroeconomic ceiling.

For Bitcoin to create a strong upward trend again, both a loosening of macroeconomic pressure and an improvement in ETF supply and demand are needed. As long as employment figures do not provide clear easing signals and Iran-related uncertainties and ETF outflows continue, the Bitcoin market will find it difficult to easily escape a cycle of rebounds and corrections.

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