As a seasoned crypto investor with a keen interest in market trends, I’ve seen my fair share of ups and downs in the Bitcoin (BTC) market. The recent price surge of up to 5% on May 3, following the U.S. employment data release, brought both relief and uncertainty.
On May 3, Bitcoin (BTC) experienced a surge of up to 5%, with the US employment figures bringing about significant positivity for risk assets.
BTC price: “Bad news is good news”
The prices of Bitcoin as depicted by CryptoMoon Markets Pro and TradingView indicated a sudden surge, pushing the BTC/USD exchange rate above $62,000 on Bitstamp.
As a crypto investor, I closely monitor economic data releases that could potentially impact the financial markets, including the U.S. nonfarm payrolls report for April. To my disappointment, this data came up short of expectations, indicating a weaker labor market than anticipated. This labor market softness aligns with the Federal Reserve’s earlier statements suggesting that it may consider implementing interest rate cuts to stimulate economic growth.
“During a press conference on May 1, Federal Reserve Chair Jerome Powell indicated that the central bank would continue to uphold the existing interest rate range unless it was necessary to make adjustments.”
“We are also prepared to respond to an unexpected weakening in the labor market.”
As an analyst, I’ve noticed that the latest nonfarm payrolls report contradicted other recent macroeconomic data releases. This discrepancy has shaken the confidence of bulls, making them reconsider their optimistic outlook.
Stocks immediately felt relief, with Dow Jones futures surging 500 points.
As a researcher examining the Kobeissi Letter, I pondered over how the Federal Reserve would tackle inflation-related matters in the future.
“On X, it was noted that the labor market is becoming less robust, economic growth is slowing down, and inflation is on the rise.”
“How is this a ‘soft landing?’”
As an analyst, I’d interpret the data from CME Group’s FedWatch Tool this way: Based on current projections, there’s a slim chance of approximately 14.8% for a rate reduction during the June meeting of the Federal Open Market Committee (FOMC). A more significant cut, around 0.25 percentage points, is predicted for the July FOMC meeting with roughly a one-third probability.
Bitcoin “entering a new era” as whales buy
In response to Bitcoin’s recent price surge, some analysts expressed optimism that these new heights might serve as a foundation, potentially reversing the downturn that brought prices to their lowest point in over two months during this week.
In simpler terms, Rekt Capital mentioned in a recent tweet that it seemed the wick had merely signified a negative development.
“Weekly Close just like this would confirm this pool of liquidity as secured support.”
In a different statement, Rekt Capital mentioned that Bitcoin’s price relative to the US dollar was approaching the end of a “risky zone” typically seen during each Bitcoin block reward halving.
According to CryptoMoon’s latest update, Bitcoin encountered difficulties regaining the $60,000 mark, as this region held significant bull market support trendlines.
“Watching this level near $62k to see if Bitcoin can reclaim,” fellow trader Josh Rager continued.
“Historically over the past year Bitcoin has a habit of breaking below support on higher time frames and reclaiming soon after.”
In recent times, whales have displayed intriguing behaviors. Meanwhile, Ki Young Ju, the founder of CryptoQuant, an on-chain analytics firm, disclosed that the region beneath $60,000 has been frequently utilized as a “dip-buying spot.”
In the last 24 hours, Bitcoin large investors, referred to as “whales,” have acquired approximately 47,000 Bitcoins ($BTC), as indicated by this chart displaying the number of active whale addresses.
“We’re entering a new era.”
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2024-05-03 18:20