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Bitcoin and other major cryptocurrencies are closely watching how the stock market reacts to the upcoming US jobs report. Data shows a 30-day correlation coefficient for Bitcoin and the MSCI World Index reaching 0.60, which is one of the highest levels ever recorded. 
A coefficient reading of 1 would mean Bitcoin and the stock market are moving in perfect unison, while -1 would suggest an opposite relationship. 
<h3 id="span-style-font-weight-400-weak-sentiment-in-crypto-markets-span">Weak sentiment in crypto markets</h3> 
Right now, there’s uncertainty over how the jobs report will influence both the stock market and Bitcoin. The crypto queen has increased by 1% to $56,653. It’s now about $17,000 short of its all-time high from March. 
That rally was driven by heavy inflows into US spot-Bitcoin ETFs, but this upward momentum has cooled off. BTC has been struggling to stay above key support levels.&nbsp; 
Over the past week, price has dropped by more than 5%, and the dip below the $58k support level has increased selling pressure, with analysts from Bitfinex predicting that Bitcoin could fall even further, possibly to $40,000. 
<img loading="lazy" decoding="async" class="alignnone wp-image-584519 size-full" src="https://www.cryptopolitan.com/wp-content/uploads/2024/09/BTCUSD_2024-09-06_13-35-04.png" alt="Bitcoin to Follow Stock Market's Lead Ahead of Key US Jobs Report" width="1920" height="783" srcset="https://www.cryptopolitan.com/wp-content/uploads/2024/09/BTCUSD_2024-09-06_13-35-04.png 1920w, https://www.cryptopolitan.com/wp-content/uploads/2024/09/BTCUSD_2024-09-06_13-35-04-300x122.png 300w, https://www.cryptopolitan.com/wp-content/uploads/2024/09/BTCUSD_2024-09-06_13-35-04-1200x489.png 1200w, https://www.cryptopolitan.com/wp-content/uploads/2024/09/BTCUSD_2024-09-06_13-35-04-768x313.png 768w, https://www.cryptopolitan.com/wp-content/uploads/2024/09/BTCUSD_2024-09-06_13-35-04-1536x626.png 1536w" sizes="(max-width: 1920px) 100vw, 1920px"> 
Another sign of bearish sentiment is the large number of liquidations in the market. On a single day, over 32,000 traders were liquidated, totaling about $84 million in losses.&nbsp; 
One of the popular people taking a short position is Arthur Hayes, the founder of BitMEX, who believes the price of Bitcoin will face more declines. 
Analysts are anticipating that the US jobs report will reveal a slight increase in hiring and a decrease in unemployment. This would show stabilization following the concerns sparked by the weaker July data. 
Speculative assets like cryptocurrencies tend to perform better in a low-interest-rate environment. So far, the Federal Reserve is expected to introduce multiple rate cuts before the year ends, totaling up to 150 basis points.&nbsp; 
These cuts could start as early as this month, with a 25 basis point reduction expected. 
If the Fed’s rate cuts come sooner rather than later, and if they are seen as a response to a weakening economy, Bitcoin’s price could drop by 15% to 20%.

Bitcoin to follow stock market’s lead ahead of key US jobs report

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