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Bitcoin May Return To $20K As US Unemployment Hits 54-Year Low

Image Source: Dmitrii D / Shutterstock

# Bitcoin May Return To $20K As US Unemployment Hits 54-Year Low
Bitcoin (BTC) experienced a decline before the Wall Street opened on Feb. 3 as new economic data from the United States showed positive signs.

## Reconsideration of U.S. recession
Based on data from Cointelegraph Markets Pro and TradingView, BTC/USD dropped to $23,000 support after initially gaining earlier in the day. The drop was influenced by the better-than-expected U.S. unemployment figures for January, leading to the lowest jobless rates since 1969. The Non-farm payrolls (NFP) data also outperformed, with average hourly earnings lining up with the forecasted 0.3% growth.

Tedtalksmacro, a well-known analytics account, highlighted the significant positive deviation in the NFP data and suggested this could be an opportunity to increase exposure to Bitcoin with the potential for BTC/USD to fall to $20,000.

This dip in Bitcoin’s value is a result of the implication that a stronger labor market might allow the Federal Reserve to maintain tighter monetary conditions for a longer period, delaying any potential recession in the near future, as mentioned by economist and analyst Jan Wüstenfeld.

## $25,000 Bitcoin now a “crowded trade”
Following the Fed’s expected interest rate hike of 0.25% and Chair Jerome Powell’s comments on “disinflation”, Bitcoin surged above $24,000 for the second consecutive day. There is optimism among market participants for a move to $25,000 before any major retracement.

According to investment research resource Game of Trades, BTC exhibited a significant breakout above its macro downtrend line and subsequent backtest, with the next significant resistance level at $25,000. However, popular trader Crypto Tony expressed concerns that the $25,000 target is now widely anticipated, making it a crowded trade.

**Image Source:** Dmitrii D / Shutterstock

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