The tug-of-war between Bitcoin bulls and bears intensifies following a robust US jobs report, causing Bitcoin’s price to oscillate around the $43,000 mark. This comes amid evaluations of US monetary policy’s future and its repercussions on cryptocurrency. Currently, Bitcoin hovers close to $42,900, showing minimal daily change.
The recent surge in US employment, with 353,000 positions added in January—surpassing the anticipated 187,000—keeps the unemployment rate steady at 3.7%, contrary to the predicted increase to 3.8%. These figures have led macro traders to adjust their expectations regarding the Federal Reserve’s rate cuts, impacting Bitcoin.
In response to the stronger-than-expected economic indicators, including CPI inflation and retail sales, the anticipated rate cuts have been dialed back. This reevaluation of monetary policy expectations has contributed to Bitcoin’s drop from its earlier peak above $49,000.
However, the landscape shows signs of positivity. Recent inflows into newly launched spot Bitcoin ETFs, notably BlackRock’s ETF reaching $3 billion in assets under management, have bolstered Bitcoin sentiment. Despite the ongoing struggle between bulls and bears, keeping Bitcoin’s price in a broad range, the medium-term outlook seems skewed towards the positive.
Strong economic performance may delay anticipated rate cuts, but tight financial conditions suggest room for monetary easing. This backdrop, coupled with new demand from spot Bitcoin ETFs and the impending reduction in Bitcoin issuance, sets the stage for a possible price surge. Market participants remain poised to capitalize on any dips within Bitcoin’s recent price range, eyeing a potential ascent towards $50,000 in the near future.
