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Bitcoin fails to beat $23.4K sellers as US payrolls upend inflation debate

Bitcoin (BTC) saw fresh rejection at $23,500 resistance on Aug. 5 as United States equities failed to embrace surprisingly strong payroll data.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

“Collapsing real wages” poke fun at payroll print

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as bears kept the market in its intraday trading range.

Wall Street opened with a whimper despite U.S. payrolls for July coming in at twice estimated levels. The curious reaction had some analysts arguing that the numbers did not in fact show economic strength, but rather existing workers taking on second jobs due to inflation.

“The gain of 528K jobs in July as the labor force participation rate fell to 62.1, means that most of the new jobs went to people who already had jobs,” gold bug Peter Schiff responded.

“Collapsing real wages force many workers to moonlight to pay the bills. If the labor market were strong one job would be enough.”

Schiff was far from alone in his suspicions about the state of employment, with Wealthion CEO Adam Taggart among others voicing distrust.

This 6-sigma blowout jobs report smells wrong

2 quarters of contracting GDP, Fed busy hiking, corp margins contracting, major companies freezing hires or actively laying off workers — these in no way indicate strong job creation

I’m calling BS

— Adam Taggart (@menlobear) August 5, 2022

Kyle Bass, chief investment officer at Hayman Capital Management, meanwhile recalled the Federal Reserve’s optimism on employment in the years prior to the 2008 Global Financial Crisis.

Be a housing crisis unless we have a significant bout of unemployment. It’s never left my memory. Boy were they wrong. #recession #Jobs

— Kyle Bass (@Jkylebass) August 5, 2022

The S&P 500 and Nasdaq Composite Index thus both opened mildly down on the day before a relief rally entered, while Bitcoin recovered from a dip below $23,000 to retarget range highs at the time of writing.

“Short corrections are possible, but trend is still up. Looking quite fine on the higher timeframes for Bitcoin,”…

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