Bitcoin (BTC) rose as much as 5% on May 3 as U.S. employment data led to a rise in risky assets.
BTC price: “Bad news is good news”
Data from Cointelegraph Markets Pro and TradingView tracked an impulsive BTC price move that pushed BTC/USD above $62,000 on Bitstamp.
U.S. nonfarm payrolls for April came in well below expectations, partly reflecting labor market weakness that the Federal Reserve said would strengthen the likelihood of a rate cut.
“We are prepared to maintain the current federal funds rate target range for the appropriate period of time,” Federal Reserve Chairman Jerome Powell said at a press conference on May 1.
“We are prepared to respond to unexpected labor market weakness.”
Non-farm payrolls contrasted with other recent macro data that helped undermine the bulls’ confidence.
Stocks felt immediate relief as Dow Jones futures jumped 500 points.
Resources to react and trade nonetheless The Kobeissi Letter asked a question How will the Federal Reserve handle the inflation problem going forward?
As X (formerly Twitter) summarized: “We now have a weakening labor market, lower GDP growth, and rising inflation.”
“How does this become a ‘soft landing’?”
The likelihood of a rate cut at the June Federal Open Market Committee (FOMC) meeting is just under 15%, according to the latest estimates from CME Group’s FedWatch Tool. The odds of the July meeting were 33% with at least a 0.25% cut.
Bitcoin “enters a new era” by buying whales
In response to the recent rise in BTC price, commentators were hoping that higher levels would remain support, with the trip this week falling to a two-month low in response to the merciless response.
Related: Why Is the Cryptocurrency Market Rising Today?
“I think it was just a downward wick,” wrote prominent trader and analyst Rekt Capital. X post.
“This weekly close will confirm the liquidity pool as secured support.”
Rekt Capital added in a separate post that BTC/USD is almost out of the “danger zone” that accompanies each block subsidy halving event.
As Cointelegraph reported, Bitcoin initially had trouble reclaiming $60,000, the area around which was a key bull market support trend line.
“I’m watching this level near $62,000 to see if Bitcoin can recover,” said fellow trader Josh Rager. continued.
“Historically, over the past year, Bitcoin has had a habit of breaking below support on higher time frames and then recovering soon after.”
Meanwhile, Joo Ki-young, founder of CryptoQuant, an on-chain analytics company that recently revealed whale behavior, said the sub-$60,000 region was a popular area for “buying the dip.”
“Bitcoin whale accumulated $47,000 BTC in last 24 hours.” I left a comment. With a chart of active whale addresses.
“We are entering a new era.”
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.