Bitcoin Price Jumps Amid Positive US Jobs Data
03 May, 2024 ● Vijesti o kovanicama
Bitcoin surged by up to 5% on May 3 following a significant boost from United States employment data.
Data from TradingView showed an impulsive BTC price increase that pushed BTC/USD above $62,000 on Bitstamp.
U.S. nonfarm payrolls data for April came in significantly below expectations, indicating some labor market weakness that the Federal Reserve suggested would support the case for interest rate cuts.
“We are prepared to maintain the current target range for the federal funds rate for as long as appropriate,” Fed Chair Jerome Powell stated during a May 1 press conference.
“We are also prepared to respond to an unexpected weakening in the labor market.”
Nonfarm payrolls contradicted other recent macroeconomic data, undermining bullish confidence.
Stocks responded with immediate relief, as Dow Jones futures surged 500 points.
Reacting to the situation, trading resource The Kobeissi Letter questioned how the Fed might handle inflation issues moving forward.
“We now have a weakening labor market, lower GDP growth, and rising inflation,” it summarized on X. “How is this a ‘soft landing?’”
The latest estimates from CME Group’s FedWatch Tool placed the likelihood of a rate cut at the June meeting of the Federal Open Market Committee (FOMC) at just below 15%, with the July meeting odds at 33% for a minimal 0.25% cut.
Commentators, responding to the latest BTC price upswing, hoped that higher levels would hold as support, suggesting the week’s dip to two-month lows was a temporary reaction.
“Looks like it was just a downside wick,” popular trader and analyst Rekt Capital posted on X. “Weekly Close just like this would confirm this pool of liquidity as secured support.”
In a separate post, Rekt Capital mentioned that BTC/USD was nearly out of a “danger zone” associated with each block subsidy halving event.
As Cointelegraph reported, Bitcoin initially struggled to reclaim $60,000, with this area being key for bull market support trendlines.
“Watching this level near $62k to see if Bitcoin can reclaim,” trader Josh Rager noted.
“Historically over the past year Bitcoin has a habit of breaking below support on higher time frames and reclaiming soon after.”
Ki Young Ju, founder of on-chain analytics firm CryptoQuant, revealed recent whale behavior, indicating that the area below $60,000 had been popular for "buying the dip."
“Bitcoin whales accumulated 47K $BTC in the past 24 hours,” he commented alongside a chart of active whale addresses. “We’re entering a new era.”
Sources:
https://cointelegraph.com/news/bitcoin-price-springs-62k-us-jobs-data-boosts-rate-cut-bets
https://www.tradingview.com/symbols/BTCGBP/?exchange=BINANCE
https://twitter.com/KobeissiLetter/status/1786374562969465214/photo/1
https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html
https://twitter.com/rektcapital/status/1786384536885932060/photo/1
