Bitcoin (BTC) hit $44,000 after Wall Street opened on December 8 as U.S. employment data narrowed market bets on interest rate cuts.
Bitcoin holds firm as employment data unsettles the US dollar.
Data from Cointelegraph Markets Pro and TradingView covers the latest BTC price action as the risk asset reacts to the latest US inflation clues.
Nonfarm payrolls beat expectations, 199,000 to 190,000, while the unemployment rate was lower than expected, 3.7% to 3.9%, according to official figures from the Bureau of Labor Statistics.
Both said the Federal Reserve’s monetary tightening had not yet had its full impact and that other data had already picked up a decline in inflation, but markets were nervous about the labor numbers.
JUST IN: Interest rate futures indicate interest rate cuts starting in March 2024 after the jobs report, then switching through May 2024.
Before the November jobs report, markets were giving a 60% chance of rate cuts starting in March 2024.
The likelihood of an interest rate cut from January 2024 has fallen from 16% to 6%… pic.twitter.com/hFYFLVP5xv
— Kobeissi Letter (@KobeissiLetter) December 8, 2023
Nonetheless, data from the CME Group FedWatch tool shows that the chances of the rate change freeze continuing at next week’s Fed meeting are virtually zero.
The US Dollar Index (DXY) showed particularly pronounced volatility around the data, briefly hitting its highest level since November 20 before erasing trading gains at 103.8 at the time of writing.
Liquidity Overwhelms BTC Price Due to Consolidation
While gold fell 0.8%, Bitcoin avoided a series of declines despite diminishing belief that an interest rate cut is on the horizon.
Related: ‘Early Bull Market’ — Bitcoin price prepares for first-ever weekly golden cross.
The largest cryptocurrency was stuck in a multi-day trading range as traders looked for signs of a continuation of the trend.
“Bitcoin remains bullish and remains strong after its recent rally,” said popular analyst Matthew Hyland. wrote This is part of our analysis of X (formerly Twitter).
“There is now clear support for about $43,000.”
Meanwhile, fellow trader and analyst Daan Crypto Trades noted a significant area of liquidity around spot prices.
#Bitcoin Cheongsan map
Since they have been located in the same area for some time, they have built up thick clusters on both sides.
Most notable: $42.9K and $43.8K
Look at those levels carefully. pic.twitter.com/Vz6eYVVwy5
— Daan Cryptocurrency Trading (@DaanCrypto) December 8, 2023
Bitcoin and altcoins continued to attract attention, with Ethereum (ETH) and Solana’s SOL (SOL) taking the overnight lead amid renewed expectations of the return of “alt season.”
“Bitcoin is still consolidating around $43,000, while Ethereum is gaining more momentum,” said Michaël van de Poppe, founder and CEO of MN Trading. said X number of subscribers.
“The bottom for ETH/BTC is close, or maybe even in. The next two months will likely see more electricity for altcoins.”
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.