The price of Bitcoin recovered to nearly $64,000 over the weekend following the release of positive U.S. employment data last week, with analysts predicting continued optimism about the U.S. economy.
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As of 10:30 a.m. Hong Kong time on Monday, it was trading at $63,905, up 3.06% over the past 24 hours. The Block’s Bitcoin price page. The price of the world’s largest cryptocurrency has remained stagnant for most of this month, falling close to $60,000 last Thursday.
Bitcoin began to rebound after the United States released its monthly jobs report last Friday, showing that 254,000 jobs were added in September, exceeding the Dow Jones forecast of 150,000.
“Optimism about a soft landing is increasing, which suggests that the U.S. economy is currently in a ‘Goldilocks’ state,” said Minjeong Presto Research analyst.
Rachel Lucas, cryptocurrency analyst at BTCMarkets, said liquidity has increased as market sentiment improves and expectations rise for another interest rate cut from the U.S. Federal Reserve in November.
CME Group’s FedWatch Tool This currently represents a 97.9% chance that the Fed will cut interest rates again to the 4.50% to 4.75% range. “(This) generally fosters a more risk attitude among investors, which benefits assets like Bitcoin,” Lucas said.
Lucas explained that another factor supporting the Bitcoin rally was the decline in Bitcoin held on centralized exchanges, which often correlates with bullish price movements as there was less selling pressure in the market.
“However, to sustain this recovery, Bitcoin will need to break and hold the key resistance at $64,500. If so, we could see a retest of $66,000,” Lucas added.
Lucas and Presto’s Jung said geopolitical tensions in the Middle East pose significant risks to the sustainability of the recent Bitcoin rally.
“October started off slow despite historically being a strong month for Bitcoin, but analysts are optimistic that the pace of recovery could accelerate as October progresses,” Lucas said.
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