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Bitcoin price soars to $64K amid weak US job data

Bitcoin’s resurgence has been notably marked by a nearly 8% surge on Friday, buoyed by softer-than-expected U.S. job data and dovish indications from the Federal Reserve, sparking renewed interest among cryptocurrency investors. During Friday morning in the U.S., Bitcoin momentarily eclipsed the $64,000 mark, reflecting a 8% rise from the previous day, and significantly outshining the general market’s performance.

Bitcoin price soars to $64K amid weak US job data

As of today, May 4, 2024, Bitcoin is trading at approximately $63,920.26, marking an 8.47% increase over the last 24 hours​ (Binance)​. This recent surge follows a broader positive trend in the cryptocurrency market, which has been influenced by a variety of factors including macroeconomic signals and investor sentiment towards the Federal Reserve’s monetary policies​​​​.

Market analyses suggest that Bitcoin’s price might continue to exhibit volatility but with a bullish undertone. Technical indicators, such as the 200-day moving average, show a strong trend, while the Relative Strength Index (RSI) indicates that the price is in a neutral zone, suggesting potential for both upward and downward movements depending on broader market dynamics​​.

Overall, the crypto market is reacting to various global economic factors, including U.S. job data and Federal Reserve policies, which seem to be influencing investor confidence and trading behaviors​​. This rally comes on the heels of the U.S. April jobs report, which showed the economy added 175,000 jobs, well below the expected 245,000.

This weaker-than-expected job growth has mitigated concerns around imminent interest rate hikes, leading to increased market optimism. According to CME FedWatch data, the probability of at least one rate cut by September has risen to 68%, up from 57% a week earlier. The earlier correction in Bitcoin, beginning in mid-March, was prompted by fears of a more hawkish Federal Reserve in light of sustained inflationary pressures.

These concerns were exacerbated as the U.S. dollar index reached its highest level since November, typically a bearish signal for risk assets such as cryptocurrencies. Analysts at Coinbase have observed that during the latest meeting of the Federal Open Market Committee (FOMC), while the policymakers indicated no imminent interest rate cuts, they did slow the pace of the central bank’s balance sheet reduction, which was interpreted as a dovish signal.

Arthur Hayes, the former CEO of BitMEX, has weighed in on Bitcoin’s prospects, suggesting that the cryptocurrency may have bottomed out around $56,000. However, he advised investors to prepare for a slow recovery rather than a rapid rebound to previous highs. Hayes predicts that Bitcoin will oscillate between $60,000 and $70,000 until August, suggesting a gradual climb in the coming months.

Market analysis reflects that Bitcoin’s current price movements might continue to show volatility but with a general bullish undertone. Technical indicators such as the 200-day moving average indicate a strong trend, while the Relative Strength Index (RSI) suggests that prices are currently in a neutral zone, capable of moving in either direction depending on broader market dynamics.

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