Bitcoin rebounds driven by expectations of rate cut amid weak US labor market
(MENAFN) Bitcoin has shown a robust recovery in the last 24 hours, climbing by 3 percent to reach USD71,000. This upswing in Bitcoin's price is primarily driven by growing expectations that the Federal Reserve might lower interest rates in September, influenced by concerns over the weakening US labor market.
Recent economic data revealed that job openings in the United States plummeted more than anticipated in April, marking their lowest level in over three years. This development has significantly bolstered predictions of an imminent rate cut by the Federal Reserve to stimulate economic growth and mitigate labor market challenges.
According to a report from the Economic Times, the likelihood of a rate cut in September has surged to 65 percent, a notable increase from 46 percent reported the previous week. This heightened probability has injected optimism into the cryptocurrency market, particularly benefiting Bitcoin and other prominent altcoins.
The positive momentum observed in Bitcoin has spilled over to various alternative cryptocurrencies (altcoins) such as BNB, Solana, XRP, Dogecoin, Toncoin, Shiba Inu, Avalanche, Chainlink, and Polkadot. These altcoins have experienced price increases ranging from 3 percent to 12 percent, buoyed by renewed investor interest and favorable market conditions.
Currently, Bitcoin faces a critical milestone as it aims to surpass its previous all-time high of approximately USD73,500. Achieving this milestone would not only break the existing price range but also set a new record peak, potentially fueling further optimism and investment in the cryptocurrency market.
In the wake of Bitcoin's resurgence, its market capitalization has surged to USD1.4 trillion, reinforcing its status as the largest cryptocurrency globally. Bitcoin's dominance within the cryptocurrency market remains strong at 53.17 percent, underscoring its pivotal role in shaping market trends and investor sentiment across the digital asset landscape.
MENAFN04072024000045015682ID1108407111
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.