As the short-term correlation between Bitcoin and the stock market strengthens, the market is focusing on tonight's upcoming U.S. employment report. Data shows that the 30-day correlation coefficient between assets like Bitcoin and the MSCI Global Equity Index is close to 0.60, one of the highest levels in two years. This implies a closer relationship between the movements of cryptocurrencies and the stock market, making investors approach with caution.
The market expects non-farm employment to increase by 165,000 in August, with the unemployment rate holding at 4.2%. This data will provide key guidance for Federal Reserve policy, especially in the context of economic slowdown and expectations of a rate cut. Benjamin Celermajer, Co-Chief Investment Officer at Magnet Capital, stated that Bitcoin's reaction to macroeconomic events is closely aligned with the stock market, with the current key support level around $55,000.
As of press time, Bitcoin has risen 0.35%, trading at $56,372. Smaller tokens like Ethereum and Solana have also seen some gains. The volatility in U.S. stock index futures suggests the market is keeping a cautious stance ahead of the employment data release.
Cici Lu McCalman, founder of blockchain advisory firm Venn Link Partners, believes that tonight's employment report will have a significant impact on the market. If the data is strong, it could dampen expectations for a Federal Reserve rate cut, thereby influencing the trajectory of the cryptocurrency market.
