Bitcoin BTC/USD has seen a notable increase of 1.08% over the past 24 hours, approaching the $64,000 mark. This surge is attributed to positive U.S. employment data and the anticipated reduction in interest rates.
What Happened: The cryptocurrency is currently trading at $63,526, recovering from a recent dip near $60,000 last Thursday. This rebound aligns with the U.S. monthly jobs report released on Friday, which showed 254,000 jobs added in September, surpassing the Dow Jones forecast of 150,000, The Block reported on Monday.
Min Jung, an analyst at Presto Research, highlighted increased optimism for a “soft landing,” suggesting the U.S. economy is in a “Goldilocks” state, according to the report. Rachel Lucas from BTCMarkets pointed out that improved market sentiment and the anticipation of a U.S. Federal Reserve rate cut in November contributed to the rally.
See Also: ‘Dogecoin Killer’ Shiba Inu Rallies 10%: What Is Going On?
Why It Matters: The CME Group's FedWatch Tool indicates a 90.5% probability of the Fed reducing rates to a range of 4.50% to 4.75%. Lucas also noted that reduced Bitcoin holdings on centralized exchanges supported the rally by decreasing market selling pressure.
However, both Lucas and Jung warned that geopolitical tensions in the Middle East could threaten the sustainability of Bitcoin’s recent gains. Lucas mentioned that despite a slow start to October, analysts remain hopeful for a continued recovery.
The recent surge in Bitcoin’s price follows a trend of positive market movements. Earlier in the week, Bitcoin, Ethereum ETH/USD, and Dogecoin DOGE/USD experienced strong gains due to positive labor market data, signaling the end of the “summer lull seasonality” and the start of the fourth quarter bull seasonality.
The positive market sentiment was further bolstered by the UAE’s decision to exempt cryptocurrency transactions from value-added tax (VAT), earning the country the title of “cryptocurrency capital.”
Price Action: Bitcoin is trading at $63,526.30, up 1.08% in the last 24 hours. Year to date, the cryptocurrency has gained $19,321.93, reflecting a 43.71% increase, according to data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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