Bitcoin Plunges on Surprise Jobs Report, Rebounds with ETF Inflows

Crypto markets rebounded on Friday, April 5th, with Bitcoin (BTC) reversing earlier losses after the release of the US Jobs Report. The report revealed higher-than-anticipated job growth but softer wage growth, leading to a decline in the dollar index and increased demand for riskier assets. Additionally, the BTC-spot ETF market experienced four consecutive days of net inflows, with significant contributions from iShares Bitcoin Trust (IBIT) and the entry of prominent Wall Street entities as authorized participants.

Bitcoin Stumbles Amidst Surprising US Jobs Report, Rebounds with ETF Inflows

In a sudden reversal of fortune, Bitcoin (BTC) plummeted to a Friday session low of $66,022, succumbing to the shockwaves of a surprisingly robust US Jobs Report. The surge in nonfarm payrolls to 303k in March, far exceeding the expected 270k, ignited concerns amidst investors.

However, the subsequent decline in the unemployment rate to 3.8% from 3.9% failed to offset the impact of the robust payroll growth. The market's attention was drawn to the 4.1% year-on-year increase in average hourly earnings, a deceleration from the 4.3% growth witnessed in February.

This softer wage growth figure provided a ray of hope for investors, triggering a surge in demand for riskier assets. The Nasdaq Composite Index responded with a 1.24% gain on Friday, providing a much-needed boost to Bitcoin's recovery efforts from below the $67,000 mark.

BTC-Spot ETF Market Experiences Net Inflow Surge

The BTC-spot ETF market has been a beacon of optimism amidst the recent volatility. For the fourth consecutive session, the market recorded net inflows on Friday, April 5. According to Farside Investors, the total net inflows reached $203.0 million, albeit a slight decline from the $213.4 million recorded the previous day.

iShares Bitcoin Trust (IBIT) played a pivotal role in driving the positive sentiment, with its net inflows surging from $144 million on April 4 to an impressive $308.8 million on April 5. The news of prominent Wall Street giants such as Goldman Sachs, Citigroup, UBS, Citadel, and ABN AMRO becoming authorized participants further fueled the enthusiasm.

Notable ETF Flow Data

Other notable flow data from Friday, April 5, included:

• Fidelity Wise Origin Bitcoin Fund (FBTC): Net inflows declined from $106.6 million to $83 million.
• Bitwise Bitcoin ETF (BITB): Net inflows rose from $11.2 million to $74.0 million.
• Grayscale Bitcoin Trust (GBTC): Net outflows increased from $79.3 million to $198.9 million.

The IBIT surge coincided with reports of prominent Wall Street firms entering the BTC-spot ETF arena. This move represents a significant step in the evolution of the US crypto market, indicating a growing acceptance of Bitcoin and the potential of spot ETFs.

Despite the initial setback caused by the US Jobs Report, Bitcoin's ability to rebound swiftly, coupled with the continued strength of the BTC-spot ETF market, suggests that the cryptocurrency remains a resilient and attractive investment for both retail and institutional investors.