Crypto News– Bitcoin news: On Friday, the cryptocurrency market experienced a significant rebound, led by a surge in bitcoin’s value, which sparked hopes that the recent downturn might finally be reaching its end. Bitcoin, the flagship cryptocurrency, saw a remarkable uptick of nearly 5%, briefly surpassing the $62,000 milestone during the morning hours in the United States. This surge was largely attributed to the release of a U.S. April jobs report that revealed a less-than-expected increase in employment, easing concerns among investors about potential hikes in interest rates.
Bitcoin News: Bitcoin Price Surges to 62K Dollars Amid Crypto Rebound
As the day progressed, bitcoin maintained its upward trajectory, trading at $61,600 at the time of the latest update. This marked a notable 4.4% increase and showcased bitcoin’s resilience, outperforming the broader market as indicated by the 3% gain recorded by the CoinDesk 20 Index (CD20) over the preceding 24-hour period.
In addition to bitcoin’s resurgence, Ether (ETH), the second-largest cryptocurrency by market capitalization, also made significant gains, reclaiming the crucial $3,000 level and posting a 3% increase within the same timeframe. Furthermore, several major altcoins, including dogecoin (DOGE), shiba inu (SHIB), and Near Protocol’s NEAR, witnessed substantial price jumps ranging from 5% to 10%.
The collective surge in various cryptocurrencies reflects a potential shift in investor sentiment, indicating renewed confidence in the market following a period of heightened volatility. This uptick in prices offers hope to enthusiasts and investors alike, suggesting that the worst of the recent market correction may indeed be behind us.
The rally in cryptocurrencies coincided with the release of the U.S. government’s Nonfarm Payrolls report for April, which revealed that the economy added 175,000 jobs during the month. This figure fell short of the analyst consensus of 245,000 and was notably lower than the previous month’s gain of 315,000 jobs. Moreover, the report indicated a slight uptick in the unemployment rate, which edged higher to 3.9% from 3.8% in March.
In response to these developments, market participants reassessed their outlook on monetary policy, with CME FedWatch data showing a notable shift in expectations. Following the release of the report, the probability of at least one interest rate cut by the Federal Reserve by September increased to 68%, up from 57% just a week prior. This adjustment in market sentiment reflected concerns about the pace of economic recovery and the potential need for further policy intervention to support growth.
Arthur Hayes Forecasts ‘Slow Ascension’ as Bitcoin Surpasses 62K Dollars Amid Crypto Rebound
The revised expectations regarding interest rates underscored investors’ sensitivity to economic data releases and their implications for monetary policy decisions. As uncertainty loomed over the trajectory of economic recovery, market participants turned their attention to central bank actions and their potential impact on asset prices, including cryptocurrencies, which saw a notable uptick amidst the evolving macroeconomic landscape.
Bitcoin’s correction since mid-March unfolded amid growing apprehensions among Federal Reserve policymakers about adopting a more hawkish stance in response to persistent inflationary pressures in recent months. These concerns escalated to the point where some traders began dismissing the possibility of any interest rate cuts occurring this year. Consequently, this shift in sentiment bolstered the U.S. dollar index, propelling it to its highest level since November. Such an uptrend in the dollar index typically serves as a bearish signal for risk assets like cryptocurrencies.
In his recent essay published early Friday, Arthur Hayes, the former CEO of crypto exchange BitMEX, suggested that bitcoin likely reached its bottom at this week’s lows of $56,000. However, he cautioned investors against anticipating a rapid recovery to the March highs, emphasizing instead the likelihood of a gradual ascent. Hayes indicated that markets are poised to cool off over the next few months. Reflecting on whether bitcoin hit a local low earlier in the week, Hayes answered affirmatively, stating, Yes. He further elaborated, I expect prices to bottom, chop, and begin a slow grind higher.
%s Comment