Bitcoin experienced a surge of up to 5% on May 3rd, thanks to positive US employment data that boosted risk assets. TradingView data revealed a sudden increase in the price of Bitcoin, pushing the BTC/USD pair above $62,000 on major cryptocurrency exchanges. The April US non-farm payroll data came in lower than expected, highlighting weaknesses in the labor market that could potentially lead to interest rate cuts by the Federal Reserve.
Bitcoin on the Rise
On May 1st, Federal Reserve Chairman Jerome Powell announced in a press conference 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, eased concerns about non-farm employment payrolls conflicting with other macro data. However, the trade source Kobeissi Letter still questioned how the Fed would address future inflation issues.
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According to the latest forecasts from CME Group’s FedWatch tool, there is a probability of just under 15% for a rate cut at the Federal Open Market Committee’s (FOMC) June meeting. Rates for a minimum 0.25% cut at the July meeting were at 33%.
What’s Happening on the Bitcoin Front?
Commentators are hopeful that the recent increase in Bitcoin prices will hold as support, potentially reversing the downward trend of the past two months. Rekt Capital, a popular trader and analyst, stated in a post that higher levels should act as a support for Bitcoin. Another trader, Josh Rager, commented on the situation as well.
Meanwhile, Ki Young Ju, the founder of on-chain analysis firm CryptoQuant, revealed that the region below $60,000 is a popular area for buying the dip.
Disclaimer: The information provided in this article should not be considered as investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies, and should conduct their own research.
