Bitcoin on Track for More Gains as Unemployment Data Drives Optimism

Bitcoin has caught the attention of cryptocurrency analyst Benjamin Cowen, who is currently bullish on the digital asset.

As Bitcoin hovers above the $100,000 mark, Cowen suggests that the market may still have room for further gains by the year’s end. Drawing from past trends following Bitcoin’s halving events, he speculates that the flagship cryptocurrency could experience another surge, provided certain conditions align.

A key factor in Cowen’s optimistic outlook is the state of the U.S. labor market. He notes that Bitcoin’s price seems to be closely tied to shifts in unemployment rates, and if the unemployment rate remains stable or shows a slight decline, Bitcoin could see continued upward movement.

The analyst points to recent data showing the U.S. unemployment rate at 4.1% in November, which mirrors the figure from the prior month. Cowen argues that if the rate holds steady or dips slightly, Bitcoin could benefit, as the cryptocurrency has historically flourished when unemployment numbers are stable or falling.

Cowen further elaborates on Bitcoin’s relationship with the labor market, suggesting that the cryptocurrency tends to rise without a specific catalyst, largely due to consistent buying behavior from long-term holders. However, for Bitcoin to experience a decline, there usually needs to be a strong external factor, such as poor economic data.

Looking back, Cowen notes that from March to August, Bitcoin struggled as unemployment figures continued to rise, but since August, the trend reversed, with the unemployment rate stabilizing or even decreasing. This shift coincided with Bitcoin’s price bottoming out, and Cowen sees this as a positive signal for the cryptocurrency’s future trajectory.

In summary, Cowen believes that if the labor market continues to show stability, Bitcoin could see a continuation of its upward trend, possibly pushing beyond its current levels as 2024 wraps up.