Bitcoin enthusiasts are cheering as the cryptocurrency’s price jumped nearly 5% following a boost from U.S. employment data. Bitcoin’s price escalated past $63,000 on Binance, as tracked by TradingView. This robust rise in price came after the U.S. nonfarm payrolls data for April fell sharply short of forecasts. This unveiled weakness in the labor market – something the Federal Reserve stated would support a case for cutting interest rates.
Federal chair Jerome Powell expressed readiness to hold the federal funds rate target range steady as needed, demonstrating a willingness to respond in case of further weakening in the labor market. This put some investors’ minds at ease, awarding a reprieve to Bitcoin and boosting stock markets, with Dow Jones futures climbing 500 points.
However, concerns are not wholly alleviated. The Kobeissi Letter, a trading resource, pondered the impact of rising inflation on this scenario. Amid a labor market downturn, decreased GDP growth, and increasing inflation, analysts eagerly watched BTC’s price upswing, hoping that the higher levels would provide firm support.
Well-known trader and analyst Rekt Capital mused that the sudden drop into the two-month low zone could be merely a temporary reaction. Rekt Capital assured that Bitcoin is on the trajectory out of the ‘danger zone,’ which usually appears during block subsidy halving events.
Bitcoin has had its challenges in holding the $60,000 mark. Still, Josh Rager, another trader, maintained optimism citing Bitcoin’s past pattern of recovering shortly after breaking below higher time frame support levels.
The lasting piece of positive news comes from the founder of CryptoQuant, Ki Young Ju, who revealed that Bitcoin whales had flocked to ‘buy the dip,’ accumulating up to 47K BTC when the price dipped below $60,000. This is perceived as a signal that we may be entering a new era in the evolution of Bitcoin.