Singapore-based cryptocurrency trading firm QCP Capital said in its latest market update that Bitcoin and Ethereum are in a “buy” moment between post-payroll data and further interest rate cuts in the US.
On Friday, nonfarm payrolls, a key indicator of the U.S. job market, showed a stronger-than-expected monthly increase in May of 272,000. This number exceeds expectations of 185,000. However, this coincided with a rise in the unemployment rate, which rose from 3.9% to 4.0%.
These mixed U.S. economic data are said to have triggered a “risk aversion” in the market, with investors moving away from riskier assets due to uncertainty over inflation numbers and ahead of the next Federal Open Market Committee (FOMC) meeting expected this week. QCP.
“Our desk saw a bullish trend from both aggressive put sellers and call spread buyers during this decline, especially in BTC,” the trading firm said.
Bitcoin and Ethereum prices fall
According to The Block Pricing Page, Bitcoin prices fell from around $72,000 levels to around $69,000 on Friday after the U.S. data was released. At the time of publication, the Bitcoin price was $69,424. Ethereum (Ether) also showed similar movements and is currently trading at $3,673.
“As the rest of the world continues to cut interest rates, it will be difficult for the United States to ignore this,” QCP Capital said. Many other central banks, including the European Central Bank and Bank of Canada, have also recently cut interest rates.
However, at the upcoming FOMC meeting, CME Group prediction There is a 99.4% chance that the United States will maintain the current interest rate of 5.25-5.50% instead of easing interest rates. In line with QCP’s predictions, Reuters poll Economists say the Federal Reserve is likely to cut interest rates twice this year, starting in September.
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