Bitcoin Price Surges Above $62,000 As US Jobs Data Increases Rate Cut Expectations! Here’s What To Expect…
Bitcoin’s price soared above $62,000 shortly after the US government issued its Nonfarm Payrolls report. The report, released earlier today, suggested a 3.9% unemployment rate in April, slightly higher than the expected 3.8%. This greater unemployment rate implies that the Federal Reserve may cut interest rates, which normally enhances the price of riskier assets like Bitcoin.
Bitcoin recovers after a turbulent week.
The April nonfarm payrolls statistics in the United States fell severely short of expectations, exposing the job market’s vulnerabilities, which the Federal Reserve suggested could bolster a case for interest rate cuts.
Fed Chair Jerome Powell remarked at a press conference on May 1 that “we are prepared to maintain the current target range for the federal funds rate for as long as appropriate.” He went on to say, “We are also prepared to respond to an unexpected weakening in the labor market.”
This poor nonfarm payroll report contrasted with earlier economic data that had boosted investor confidence.
According to the most recent predictions from the CME Group’s FedWatch Tool, the chances of a rate drop at the Federal Open Market Committee (FOMC) meeting in June are slightly under 15%. For the July meeting, the odds are 33% for a modest 0.25% cut. Several reasons contributed to Bitcoin’s recent surge, including the Block’s recent announcement to buy BTC. Block announced in its most recent earnings report that it intends to allocate 10% of its gross profit from Bitcoin goods to monthly Bitcoin purchases. This could have boosted the present purchasing enthusiasm. Leading analysts earlier advocated keeping an eye on the $62,000 barrier to see if Bitcoin might retake it. Ki Young Ju, creator of the on-chain analytics business CryptoQuant, stated that the area Below $60,000 has been popular for “buying the dip.” He noted, alongside a chart of active whale addresses, that Bitcoin whales have acquired 47K $BTC in the previous 24 hours.
What’s Next for Bitcoin Price?
Bitcoin has been on a comeback bounce after buyers successfully defended the $56K support level. In the last few hours, the BTC price has experienced tremendous buying pressure and surpassed the $60K milestone. However, it experienced slight downward pressure around $62K. As of writing, BTC is trading at $61,783, up more than 4.6% in the last 24 hours.
The BTC price is currently seeking to break above its 200-day EMA trend line, indicating bulls’ superiority over bears. Despite buyers’ efforts to reclaim land above with $65,000 may have various objectives. A retreat from this level would imply a bearish resistance shift, perhaps leading to a drop to the 61.8% Fibonacci retracement level at $60K.
However, this pessimistic view may change if the price successfully holds above $65K, triggering a recovery to $67K. As the RSI level remains above the midline, buying demand may increase in the next hours.