Bitcoin experienced a surge of up to 5% on May 3rd, driven by positive US employment data that boosted risk assets. According to TradingView, the sudden price movement propelled the BTC/USD pair above $62,000 on major cryptocurrency exchanges. The April non-farm payroll data in the US fell well below expectations, highlighting weaknesses in the labor market that could potentially lead to a cut in interest rates, as suggested by the Federal Reserve (Fed).
Fed Chairman Jerome Powell, during a press conference on May 1st, announced the Fed’s readiness to maintain the current target range for the federal funds rate as long as it remains appropriate. The non-farm employment payrolls reacted immediately, easing concerns as Dow Jones futures rose by 500 points. However, the Kobeissi Letter, a trade source, still questioned the Fed’s strategy for addressing future inflation issues.
The latest forecasts from CME Group’s FedWatch tool indicate a probability of just under 15% for a rate cut at the Federal Open Market Committee’s (FOMC) June meeting. Additionally, there is a 33% chance of rates being cut by at least 0.25% at the July meeting.
As Bitcoin prices continue to rise, commentators are optimistic that higher levels will provide support, potentially reversing the recent decline to two-month lows. Rekt Capital, a popular trader and analyst, expressed this sentiment in a post. They also mentioned that the BTC/USD pair is currently outside the dangerous zone typically associated with block subsidy halving events. Trader Josh Rager echoed this positive outlook.
Meanwhile, Ki Young Ju, founder of on-chain analysis firm CryptoQuant, revealed that the region below $60,000 is a popular buying area for traders looking to take advantage of price dips.
It is important to note that the information provided in this article does not constitute investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.
