"The labour market functions as a crucial intermediary in the monetary policy transmission mechanism: it reflects both the health of economic growth and the degree of inflationary pressure. A scenario in which job growth remains moderate, unemployment rises slightly, and wages remain stable would reinforce expectations that the Federal Reserve will enter an easing cycle, thereby improving global liquidity conditions and supporting Bitcoin."
"Data from SoSoValue shows multiple sessions of large-scale outflows, with some days exceeding 800 million USD, causing the total net assets of Bitcoin ETFs to decline from a peak of around 160 billion USD to nearly 140 billion USD. This weakening in institutional demand has played a significant role in the stagnation of Bitcoin's price, which is currently trading around 108,000 USD."
In August institutional capital flows into spot Bitcoin ETFs reversed after strong second-quarter growth, with multiple large-scale outflows—some exceeding $800 million—reducing ETF net assets from about $160 billion to nearly $140 billion. Institutional demand has weakened, contributing to Bitcoin's price stagnation near $108,000. Market attention centers on an upcoming U.S. labour data cluster (JOLTS, ADP, ISM Services, Non-Farm Payrolls, unemployment rate, average hourly earnings), since labour conditions mediate monetary policy and inflation. Moderate job growth and stable wages would bolster Fed easing expectations and liquidity, while sharp labour deterioration would heighten recession fears and weigh on risk assets. European cooling inflation offers modest positive spillovers.
Read at London Business News | Londonlovesbusiness.com
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