Bitcoin experienced a surge of up to 5% on May 3rd, following the release of US employment data that boosted risk assets. TradingView data showed a sudden increase in the price of Bitcoin, pushing the BTC/USD pair above $62,000 on major crypto exchanges. The April US non-farm payroll data came in lower than expected, exposing weaknesses in the labor market that could lead to a reduction in interest rates, according to the Federal Reserve.
Bitcoin on the Rise
During a press conference on May 1st, Federal Reserve Chairman Jerome Powell announced that they are prepared to maintain the current target range for the federal funds rate as long as it remains appropriate. This announcement, along with the rise in Dow Jones futures by 500 points, alleviated concerns about non-farm employment payrolls conflicting with other macro data. The trade source Kobeissi Letter raised questions about how the Federal Reserve will address future inflation issues.
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According to the latest forecasts from CME Group’s FedWatch tool, there is a less than 15% probability of a rate cut at the Federal Open Market Committee’s (FOMC) June meeting. However, rates for a minimum 0.25% cut at the July meeting were at 33%.
What’s Happening on the Bitcoin Front?
Commentators are optimistic that the recent increase in Bitcoin prices will continue to be supported, although they expect some volatility due to two-month lows. Rekt Capital, a popular trader and analyst, stated in a post:
Rekt Capital also mentioned in a separate post that the BTC/USD pair is currently outside the danger zone that typically accompanies block subsidy halving events. Trader Josh Rager also commented:
Meanwhile, Ki Young Ju, the founder of on-chain analysis firm CryptoQuant, revealed that the region below $60,000 is a popular area for investors to buy the dip. He stated:
Disclaimer: This article is not intended as investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry risks. It is advisable to conduct thorough research before making any investment decisions.