Bitcoin
Bitcoin (BTC) Price Hits $62K As DOGE, SHIB, NEAR Lead Crypto’s Recovery After Soft Jobs Data
Cryptocurrencies jumped on Friday led by bitcoin (BTC) gain, raising hopes that the worst of the reduction may be over.
BTC rose nearly 5% to briefly above $62,000 during US morning hours after a colder-than-expected spell April US jobs report which eased concerns about higher interest rates. At press time, bitcoin was trading at $61,600, up 4.4% and outperforming the broad market CoinDesk 20 Indices (CD20) Advance of 3% in the last 24 hours.
Ether (ETH) recovered the $3,000 level and rose 3% during the same period, while top altcoins dogecoin (DOGE)shiba inu (SHIB) and upcoming protocol CLOSE jumped 5%-10%.
The rebound came as the U.S. economy added 175,000 jobs in April, fewer than analysts’ consensus of 245,000 and the previous month’s 315,000, according to the government’s Nonfarm Payrolls report. It also showed that the unemployment rate slowly rose to 3.9% from 3.8% in March.
Following the report, market participants saw a 68% probability of at least one rate cut by September, up from 57% a week ago. CME FedWatch data indicated.
Bitcoin’s correction since mid-March has coincided with Federal Reserve policymakers’ growing concerns about taking a more aggressive stance in the face of sticky inflation in recent months, with some traders even dismissing the chances of any rate cuts this year. This helped the US dollar index reach its highest level since November, often a bearish sign for risky assets like cryptocurrencies.
In addition to the soft jobs data, Coinbase analysts David Han and David Duong took note of this week’s FOMC meeting, in which policymakers indicated no interest in cutting rates but slowed the pace of the drain on the central bank’s balance sheet – many Sometimes referred to as quantitative. tightening campaign (QT) – as a sign of moderation.
“We believe the FOMC’s more dovish-than-expected statement signaled the peak in the dollar’s upward momentum against both currency markets. [foreign currencies] and crypto pairs,” Han and Duong wrote.
Arthur Hayes, former CEO of cryptocurrency exchange BitMEX, said in his last rehearsal On Friday, bitcoin likely hit this week’s low of $56,000, but warned investors to expect a gradual climb rather than a quick recovery to March highs as markets cool in the coming months. “Bitcoin has reached a local low […] early this week,” Hayes asked. “Yes,” he concluded. “I expect prices to drop, drop and start a slow climb.”
Talking about what’s next, he predicted “a rally to above $60,000 and then limited price action between $60,000 and $70,000 by August.”