Cryptocurrencies rebounded on Friday led by gains in Bitcoin (BTC), raising hopes that the worst of the drawdown may be over.
BTC rose about 5% during the morning hours in the U.S., at one point topping $62,000 after cooler-than-expected weather. US April employment statistics Concerns about rising interest rates have eased. At the time of this writing, Bitcoin was up 4.4% to remain at $61,600, outperforming the overall market. CoinDesk 20 Index (CD20) 3% ahead in the last 24 hours.
Ether (ETH) has regained the $3,000 level and is up 3% over the same period, while altcoin giants Dogecoin (DOGE), Shiba Inu (SHIB), and Near Protocol near It has increased by 5% to 10%.
The increase came after the U.S. economy added 175,000 jobs in April, according to the government's nonfarm payrolls report, compared to the analyst consensus of 245,000. This was lower than the previous month's 315,000. It was also revealed that the unemployment rate has gradually increased from 3.8% in March to 3.9%.
Following the report, market participants now see a 68% chance of at least one rate cut by September, up from 57% a week ago. CME FedWatch data is shown.
Bitcoin's correction since mid-March coincides with growing concerns that the Federal Reserve is taking a more hawkish stance in the face of sluggish inflation in recent months. Some traders are even denying the possibility of a rate cut this year. This pushed the U.S. dollar index to its highest level since November, which is often a bearish signal for risk assets such as cryptocurrencies.
In addition to the weak employment report, Coinbase analysts David Hung and David Duong said that while policymakers have shown no interest in cutting interest rates, central bank balance sheets, often referred to as quantitative We noted this week's FOMC meeting, which slowed the pace of outflows. Tightening (QT) campaign – as a dovish sign.
“We believe the FOMC's more dovish statement than expected indicates that upward momentum for both the US dollar and the currency has peaked.” [foreign currencies] and crypto pairs,” Han and Duong wrote.
Arthur Hayes, former CEO of cryptocurrency exchange BitMEX, wrote in his book: latest essay Early Friday morning, he said Bitcoin had likely bottomed at this week's low of $56,000, but the market will cool over the next few months, leading to a gradual recovery rather than a rapid recovery to March highs. He warned investors to expect a rise. “Has Bitcoin hit a local low?” […] “Earlier this week,” Hayes asked, concluding with a “yes,” he said, “we expect prices to bottom out, get chopped, and then slowly start to rise.”
Regarding future developments, he predicted, “The price will rise to over $60,000, and then continue to move within a range between $60,000 and $70,000 until August.''
