Bitcoin Tumbles Below $70K After Mixed US Jobs Data and ECB Rate Cut
[CITY] – Bitcoin took a dip on Friday, slipping below $70,000 in the wake of mixed US jobs data and a rate cut by the European Central Bank (ECB). The cryptocurrency’s value fell by 1.8%, adding to a week of losses.
US Jobs Data: Boosts and Concerns
The US Bureau of Labor Statistics released its May jobs report, which painted a two-sided economic picture. On the positive side, job creation accelerated, with 559,000 new positions added. However, the unemployment rate also ticked up to 4%, raising concerns about the health of the labor market.
The job growth suggests economic strength, but the uptick in unemployment and flat weekly hours worked indicate potential underlying issues. Despite a 0.4% increase in average hourly earnings, the pace of aggregate weekly payroll growth in the private sector slowed compared to the previous year.
ECB Rate Cut Impacts Liquidity
Adding to the market uncertainty, the ECB lowered its benchmark lending rate from 4% to 3.75%. This marks the first reduction in five years and is expected to increase liquidity in the financial system.
The move may make alternative assets like Bitcoin more attractive to investors seeking higher returns. However, it’s worth noting that the ECB’s decision could also strengthen the euro, which could weigh on dollar-denominated assets like Bitcoin.
Institutional Inflows Support Bitcoin
Despite the downward pressure from the jobs data and ECB rate cut, Bitcoin has received support from institutional inflows. US spot Bitcoin ETFs have recorded over $1.54 billion in net inflows this week, a sign of growing institutional interest in the cryptocurrency.
These inflows suggest that institutional investors are taking a long-term view of Bitcoin and expect it to maintain its value or even appreciate in the future.
Market Reaction and Outlook
Traders and analysts are assessing the implications of the latest developments on Bitcoin’s price. Some see the recent dip as a temporary correction, while others believe it could signal a broader market downturn.
In the short term, Bitcoin’s price may oscillate within a range as investors digest the new information. However, the longer-term outlook for the cryptocurrency remains bullish, supported by institutional inflows and the growing acceptance of Bitcoin as an alternative asset.
Divya 
Mehek