Tuesday, 27 February 2024
Trending

Crypto News

Markets rethink Fed rate cuts as Bitcoin circles $44K on US jobs data

Markets rethink Fed rate cuts as Bitcoin circles $44K on US jobs data

Bitcoin (BTC) tapped $40,000 after the Dec. 8 Wall Street open as United States employment data shrunk market bets on interest rate cuts.

BTC/USD 1-hour chart. Source: TradingView

Bitcoin holds firm as jobs data unsettles U.S. dollar

Data from Cointelegraph Markets Pro and TradingView covered the latest BTC price action as risk assets reacted to the latest U.S. inflation cues.

Nonfarm payrolls came in above expectations at 199,000 versus 190,000, while unemployment was lower than forecast at 3.7% versus 3.9%, per an official release from the U.S. Bureau of Labor Statistics.

Both suggested that the full impact of Federal Reserve monetary tightening had yet to show itself, and while other data had already captured declining inflation, markets treated the labor figures nervously.

Data from CME Group’s FedWatch Tool nonetheless put the odds of anything other than a rate change freeze continuing at next week’s Fed meeting at practically zero.

Fed target rate probabilities chart. Source: CME Group

The U.S. dollar index (DXY) saw particularly pronounced volatility around the data, briefly hitting its highest levels since Nov. 20 before erasing its gains to trade at 103.8 at the time of writing.

U.S. dollar index (DXY) 1-hour chart. Source: TradingView

Liquidity crowds BTC price amid consolidation

While gold was down 0.8%, Bitcoin managed to avoid a straight comedown despite the decreased belief in lower interest rates coming sooner.

Related: ‘Early bull market’ — Bitcoin price preps 1st ever weekly golden cross

The largest cryptocurrency stayed locked in a multi-day trading range as traders looked for signs of trend continuation.

“Bitcoin still consolidating in an uptrend and holding strong after the recent move,” popular analyst Matthew Hyland wrote in part of analysis on X (formerly Twitter).

“Clear support around $43k now.”

Fellow trader and analyst Daan Crypto Trades meanwhile noted significant areas of liquidity directly around spot price.

Click Here to Read the Full Original Article at Cointelegraph.com News…