A Hot Jobs Report Could Send Bitcoin Price to $15,000, Hedge Fund Says | Tech News

A Hot Jobs Report Could Send Bitcoin Price to $15,000, Hedge Fund Says

A stronger-than-expected US jobs report on Friday could send convulsions through cryptocurrencies and push Bitcoin to as low as $15,000, according to a hedge fund that dumped much of its crypto holdings in late August.

By:BLOOMBERG
| Updated on: Sep 03 2022, 22:58 IST
This malicious Firefox add-on stole thousands of dollars in cryptocurrency
bitcoin
1/6 A particular malicious add-on for Firefox, that goes by the name Safepal Wallet, has managed to scam users by stealing money from them and managed to live on the Mozilla add-ons store for seven months before getting detected and removed. (Pixabay)
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2/6 Safepal is essentially a cryptocurrency wallet application that is capable of holding more than 10,000 types of assets, including Ethereum, Bitcoin, Litecoin, etc. However, Safepal is an official smartphone app that is available for Apple and Android both. There are no known “authentic” Safepal browser extensions. (BleepingComputer)
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3/6 According to a post shared by a user who goes by the name Cali on the Mozilla Support forum, within a few hours of installing and logging in to the Safepal Wallet extension with their real Safepal credentials, they saw their wallet balance drop to $0 from $4,000.  (Mozilla Support Forum )
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4/6 While investigating Safepal Wallet, BleepingComputer came across the phishing domain used by the add-on and this webpage was also listed as the "support site" link on the fake add-on's home page: https://safeuslife.com/tool/. WHOIS records indicate the this phishing site was registered in January this year via Namecheap. And BleepingComputer reported that at the time of them filing this report, the webpage is still live and it instructs people to key in their "12-word Backup Phrase in the correct order to pair your SafePal Wallet". (BleepingComputer )
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5/6 Once the recovery phrase is entered and the form is submitted, the page refreshes without any noticeable response and the recovery phrase is sent to the attacker. A stolen recovery phrase can give attackers control over your wallet along with the ability to access and transfer funds. (Pixabay)
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6/6 Five days after Cali publicly reported the incident, a Mozilla spokesperson responded to say that they were investigating the issue and the page for Safepal Wallet has since been removed by Mozilla. The Mozilla add-ons store now has one-star reviews posted by some users that are warning others to not download “Safepal Wallet”. (BleepingComputer )
bitcoin
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Bitcoin was trending at about $20,100 as of 9:14 a.m. in London. (REUTERS)

A stronger-than-expected US jobs report on Friday could send convulsions through cryptocurrencies and push Bitcoin to as low as $15,000, according to a hedge fund that dumped much of its crypto holdings in late August.

Elevated employment figures would raise the odds of more jumbo interest rate increases by the Federal Reserve, jeopardizing the $20,000 level at which Bitcoin has been holding firm since a mid-August selloff, said Max Gokhman, chief investment officer of AlphaTrAI.

Bitcoin “is very tied to macro sentiment right now,” Gokhman said in an interview. The $20,000 level “has an importance. If we did break down below that you will see a further drop,” he said.

Bitcoin was last in the vicinity of $15,000 some two years ago, at the initial stages of a giant pandemic-era bull run that peaked at almost $69,000 last November. Digital tokens subsequently imploded under tightening monetary policy that crushed speculative ardor and contributed to blowups of leveraged crypto firms.

Gokhman's hedge fund shifted a large chunk of its crypto portfolio into cash toward the end of August. The portfolio trades on signals from models that employ artificial intelligence.

Gokhman said the fund ended the month with a 0.4% gain compared to a 13% drop for its benchmark, the Bloomberg Galaxy Crypto Index.

“The true test for Bitcoin is if it can stay close to the $20,000 level after the NFP release,” Edward Moya, senior market analyst with Oanda Corp., wrote in a note, referring to the upcoming nonfarm payrolls data. “A hot labor market report and Fed rate hike bets might surge and that could trigger downward pressure that eyes the summer lows.”

If Bitcoin manages to hold $20,000, that could strengthen arguments that the token, and perhaps the wider crypto sector, has found a floor. But some traders are evidently worried and are paying a premium in the options market for protection against a slump toward the $15,000 level.

The payrolls report due 8:30 a.m. New York time is projected to show a 298,000 gain and solid wage growth. Bitcoin was little changed at about $20,100 as of 9:14 a.m. in London ahead of the jobs print.

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First Published Date: 03 Sep, 22:45 IST
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