On January 16, following the opening of Wall Street, Bitcoin (BTC) dipped even lower than $100,000, as financial markets shrugged off an unexpected surge in U.S. unemployment figures.
BTC price wobbles as altcoins take the lead
Based on data gathered from CryptoMoon Markets Pro and TradingView, it appears that the BTC/USD pair was aiming towards a potential value of around $97,000. However, following the release of this week’s initial jobless claims, there has been a nearly 3% decrease in its value. As an analyst, I am closely monitoring these developments to understand their implications for the cryptocurrency market.
The numbers surpassed the predicted median values, coming in at 217,000 compared to 210,000, hinting that the job market showed a slight underperformance relative to expectations.
Although there wasn’t a significant boost, the growth was minimal, and stocks kept their balance during the U.S. market opening, following the strong advancements observed the previous day.
Worldwide markets surged last night due to a CPI report showing less inflation than anticipated, which alleviated concerns about rising prices. Bitcoin climbed 4.13%, reaching $100.8K before leveling off slightly below the $100K mark, according to trading firm QCP Capital’s update to their Telegram channel followers.
“The same level of optimism was also seen in equities as S&P 500 rose 1.83% and Nasdaq gained 2.27%.”
On January 15th, a significant amount of money – approximately $755 million – flowed into U.S. Bitcoin exchange-traded funds (ETFs), according to QCP’s observation, which they described as astonishing.
The quick increase in incoming funds indicates robust institutional interest, indicating a promising future for cryptocurrencies.
In the past week, Bitcoin reached a milestone of $100,000 again for the first time, but it was the altcoins that garnered the most attention. Notably, XRP (XRP) set new record highs on Bitstamp.
Solana (SOL) also produced standout 8% daily gains to close in on price discovery.
The driving force behind both was the widespread news coverage suggesting that the upcoming Donald Trump administration might establish a more extensive cryptocurrency reserve, favoring U.S.-founded altcoins.
According to QCP, as the dominance of Bitcoin decreases from 58.6% to 57.4%, it is anticipated that alternative cryptocurrencies (altcoins) will surpass Bitcoin in performance since the profits are likely to shift towards Ethereum and other altcoins.
“For confirmation of altcoin season, BTC dominance will need to break below the support at 57.3% while hovering around the 100K milestone.”
No relief for Fed rate cut expectations
Moving forward, there’s a word of warning about cryptocurrencies and high-risk assets as the anticipation for further monetary relaxation by the Federal Reserve seems minimal following the release of the latest employment figures.
According to CME Group’s FedWatch Tool, there was only a 2.7% likelihood that the Federal Reserve’s next meeting would result in another reduction of interest rates.
As an analyst, I’d rephrase it as follows: “Yesterday in my analysis, I noted that while many consumers express their belief that we are currently experiencing a recession, interestingly enough, the stock market is hovering just under 5% away from its all-time peak.
“Inflation is behind a massive divide between Wall Street and Main Street.”
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2025-01-16 18:35