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Bitcoin Price Surges Above $60,000 After US NFP Data Release
The recent surge in Bitcoin (BTC) price to the mid-$61,000s follows a weaker-than-expected US labor market report, raising expectations of multiple Fed interest rate cuts by the end of 2024.
Key US Labor Market Data:
- US Labor Apr Nonfarm Payrolls: +175K (Consensus: +240K)
- US Apr Unemployment Rate: 3.9% (Consensus: 3.8%)
- US Apr Average Hourly Earnings: +0.20% to $34.75 (Yearly: +3.92%)
- US Apr Private Sector Payrolls: +167K, Government Payrolls: +8K
The softer job report led to increased expectations of Fed rate cuts, with traders adjusting their bets for 2024, impacting US yields and the dollar.
Market Impact:
- DXY dropped below 105 for the first time since April 10th
- US 10-year yields fell to 4.5% from above 4.7% last week
- 2-year yield decreased to 4.8% from above 5% three days ago
Improved financial conditions boosted the S&P 500 to over 5,100, injecting bullish momentum into the crypto market.
Bitcoin Price Outlook
The Bitcoin price faces resistance at $64,000, needing a breakout to reverse the current downtrend.
Factors Influencing Bitcoin Price:
- Interpretation of US jobs data impacting inflation expectations
- Fed’s stance on inflation and interest rate cuts
- Market anticipation of labor market trends
Bitcoin traders should consider potential corrections due to market speculation and outflows from spot Bitcoin ETFs.
Long-Term Bitcoin Prospects
Despite short-term uncertainties, long-term fundamentals for Bitcoin remain strong:
- Expected inflows into spot Bitcoin ETFs
- Institutional interest in Bitcoin investment
- Post-halving tailwinds anticipated in 4-6 months
Investors may view current levels as a dip-buying opportunity, with a potential rally later in the year.
Disclaimer
Cryptocurrency investments are high-risk. This article provides information and not investment advice. Capital loss is possible.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
