Bitcoin's Volatile Reaction to US Employment Report: Highlights and Insights

Bitcoin's Market Volatility in Response to US Employment Data:

• Following the release of the US employment report, Bitcoin plummeted over $1,300, from $71,997 to $70,663.
• The report revealed stronger-than-expected job growth, indicating a less likely chance of rate cuts in September.
• This news led traders to infer a delayed correction in the market, although Bitcoin has since recovered to $71,400.

Institutional Investors Drive Bitcoin Accumulation:

• Despite the market correction, institutional investors are actively accumulating Bitcoin.
• New whale wallets on the Bitcoin network are adding around $1 billion in BTC daily.
• Permanent holders have accumulated an additional 70,000 BTC in the past 30 days, the largest increase since April.
• Bitcoin demand from large investors is growing at a rate of 4.4% per month.
• Spot ETFs in the USA have also witnessed increased demand for Bitcoin, with holdings growing from 819,000 BTC to 859,000 BTC since May 1.

Other Market Dynamics:

• Selling pressure from traders has significantly decreased, as the unrealized profit ratio for traders has reset to 0%.
• However, stablecoin liquidity growth has decelerated, which could potentially hinder a sustained price rally in the short term.