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Cryptocurrency News Articles
Bitcoin (BTC) Price Rallies 5% as US Unemployment Rate Falls to 4.05%, Reinforcing Hopes for a Robust Year-End Rally
Oct 07, 2024 at 03:03 pm
Bitcoin (BTC) kicked off the week with a strong surge on Monday morning, moving from around $62,000 to $64,000, adding to its gains from the weekend to sit 5% up since Friday.
Bitcoin (BTC) price action surged on Monday morning, kicking off the week with a 5% gain. BTC price moved from around $62,000 to $64,000, continuing its rally from the weekend.
"This positive economic data strengthens the outlook for a robust year-end rally," said Valentin Fournier, lead analyst at BRN.
Bitcoin price surged on Monday morning, adding to its gains from the weekend and rising by 5% since Friday. BTC price began the day trading at around $62,000 before quickly surging to $64,000. Bitcoin price then continued to rise, reaching a high of $65,580 as of press time.
This surge in BTC price was sparked by a better-than-expected US unemployment report, which boosted investor sentiment and drove up the price of Bitcoin. The unemployment rate fell to 4.05% in September, beating analysts' expectations and sparking hopes for a strong year-end rally.
According to Reuters, analysts had expected the unemployment rate to fall to 4.2%. However, the actual rate was lower than expected, which helped to drive up investor sentiment and boost the price of Bitcoin.
"This positive economic data strengthens the outlook for a robust year-end rally," said Fournier.
The institutional demand for Bitcoin may also be increasing, as evidenced by the recent price gains. After three consecutive days of net outflows, ETF inflows remained sluggish on Friday. However, the recent price gains may encourage institutional investors to step in more aggressively. A new wave of inflows could further fuel Bitcoin's upward momentum, Fournier added.
Investors are also keeping an eye on key inflation data, including the Consumer Price Index (CPI) and Producer Price Index (PPI), which will be released later this week. While it may be too early to see the effects of interest rate cuts reflected in these numbers, any signs of a decline in US inflation could have a positive impact on the market.
Recent rate cuts by the Federal Reserve have helped to stimulate the economy and boost investor confidence. Lower interest rates make borrowing cheaper for businesses and consumers, which can lead to increased spending and economic growth. This, in turn, can be positive for Bitcoin, as a stronger economy often leads to increased demand for risk assets like cryptocurrencies.
According to analysts, Bitcoin is likely to continue trending upwards, potentially testing the upper boundary of its trend at $68,000. While there may be some resistance between $65,000 and $67,000, Fournier anticipates that Bitcoin will ultimately break through this resistance level.
"We expect the combination of easy monetary policy, strong risk-on sentiment, and a rebound in Trump’s winning odds to present a strong Q4 for crypto prices in general. While the journey will likely be choppy, we are encouraged by the recent price action which has seen higher lows on each subsequent sell-off, and will remain patient to wait for new highs on BTC before the end of the year," Augustine Fan, head of insights, SOFA.org, told Blockhead.
"Q4 is traditionally a bullish period for BTC and there are a number of catalysts that could see history rhyme," said NYDIG's research head Greg Cipolaro, adding that the upcoming US election on November 5 will play a big part in market performance for Q4, with larger gains to come if Trump wins.
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