In response to today’s release of the US labor market report, the price of Bitcoin has established a level above $60,000.
Shortly after the US jobs report was published, Bitcoin’s (BTC) value increased as market expectations for the Federal Reserve’s (Fed) key rate cut moved from November to September.
According to data compiled by CoinMarketCap, Bitcoin surged over 4% following the statistics’ release and is still climbing, heading towards $62,000.
Bitcoin “whales” amassed 47,000 BTC ahead of the Fed report, according to CryptoQuant CEO Ki Young Ju.
Due to changes in macroeconomic data, market expectations for the path of the Fed key rate in 2024 have shifted. Rather than one cut, the market now anticipates two cuts of 0.25% each, with the first cut anticipated in September instead of November, before statistics are released.
Investors should pay close attention to the May 15 report on consumer price dynamics, according to Bloomberg analysts.
They should not be concerned about their employment mandate following such a robust run of job gains, as the labor market is still strong overall. They should wait for further signs of a slowdown or an unexpected sharp decline in employment before taking any action. The FOMC will remain on hold until they can determine how much inflation is.
The expert from CIBC Capital Markets, Ali Jaffery
The worldwide markets’ willingness to take risks rose following the publication of the US labor market report. With a 1.2% opening gain, the S&P 500 stock index is now in the neutral zone, while the cryptocurrency fear/greed index rose five points today, leaving it in the fear zone.
A price drop below $60,000 was recently recorded for Bitcoin. The released data in the US prompted a surge in discussions around the hashtag #buythedip and mentions of BTC, according to Santiment analysts, who noted this against the backdrop of Bitcoin’s fall.Experts say the recent uptick in sentiment shows that traders are once again deeply divided. Although some are still wary, others are eager for a buying opportunity.