Bitcoin Jumps Nearly 5% Amid Cooler-Than-Expected U.S. Jobs Report

Cryptocurrencies saw a strong rebound on Friday, with Bitcoin leading the charge as it surged nearly 5% to briefly surpass $62,000. The rally was fueled by a cooler-than-expected U.S. jobs report and the Federal Reserve's dovish stance, which eased concerns about higher interest rates. Former BitMEX CEO Arthur Hayes expressed optimism about Bitcoin's price action, suggesting it likely bottomed at $56,000 earlier in the week.

Emmanuel Abara Benson
New Update
cryptocurrency market rally

cryptocurrency market rally

Cryptocurrencies rallied on Friday, with Bitcoin leading the charge as it surged almost 5% to briefly surpass $62,000 during U.S. morning hours.

The uptick sparked optimism among investors, suggesting that the worst of the recent drawdown might be over. At press time, bitcoin was trading at $61,600, up 4.4%, outpacing the broader CoinDesk 20 Index's 3% advance over the past 24 hours. Ether reclaimed the $3,000 level, rising 3%, while altcoins like dogecoin, shiba inu, and Near Protocol's NEAR saw gains ranging from 5% to 10%.

The rally in the cryptocurrency market coincided with the release of a cooler-than-expected U.S. April jobs report, which eased concerns about higher interest rates. With the U.S. economy adding 175,000 jobs in April, below the analyst consensus of 245,000, market participants adjusted their expectations for monetary policy, with a higher probability of at least one rate cut by September, according to CME FedWatch data.

Federal Reserve policymakers' recent dovish stance also contributed to the positive sentiment in the crypto market. During this week's FOMC meeting, policymakers signalled no interest in cutting rates but tapered the pace of the central bank's balance sheet runoff, known as quantitative tightening (QT), which was interpreted as a dovish sign by market analysts.

Arthur Hayes, the former CEO of crypto exchange BitMEX, expressed optimism about Bitcoin's recent price action, suggesting that it likely bottomed at $56,000 earlier in the week. However, Hayes cautioned investors to anticipate a gradual climb instead of a swift recovery to previous highs, predicting range-bound price action between $60,000 and $70,000 until August.

Key Takeaways

  • Bitcoin's surge led a cryptocurrency market rebound, with Ether and altcoins also experiencing gains.
  • Cooler-than-expected U.S. April jobs report eases concerns about higher interest rates, boosting market sentiment.
  • Federal Reserve's dovish stance and reduced pace of quantitative tightening signal potential relief for crypto and forex markets.
  • Former BitMEX CEO predicts Bitcoin's bottoming at $56,000 and anticipates a gradual climb with a price range of $60,000 to $70,000 until August.