Bitcoin
Bitcoin Price Forecast as Weak US Jobs Data Fuels Rate Cut Hopes – Will BTC Go Up?
Last updated: May 10, 2024 04:52 EDT | 3 minutes reading
Bitcoin (BTC) fell slightly by 0.20% to settle at $63,000, but maintains a bullish stance in the latest bitcoin price prediction. The rise in jobless claims to 231,000, the highest since August 2023, suggests a cooling in the US labor market, leading to early action by the Federal Reserve.
This could lead to rate reductions earlier than anticipated, influencing Bitcoin’s appeal as a non-traditional investment.
US jobs data sparks rate cut speculation – what’s next for BTC
The Department of Labor reported a notable increase in initial fees unemployment insurance claims for the week ending May 4reaching 231,000 – 22,000 more than the previous week and well above the Dow Jones estimate of 214,000.
This marks the highest level since August 26, 2023, signaling possible economic tensions and a cooling of the labor market that had previously shown resilience.
Continuing claims also increased, rising by 17,000 to 1.78 million, while the four-week moving average of claims rose to 215,000. These numbers suggest a gradual economic slowdown, prompting discussions about potential early rate cuts by the Federal Reserve to stimulate growth.
Such a slowdown in the job market has historically been a catalyst for the price of Bitcoin as investors turn to non-traditional assets.
Non-agricultural payroll increases concern
Of april non-farm payroll data added to these concerns, showing a gain of just 175 thousand jobs, well below the 240 thousand expected. This was the smallest increase since October 2023. However, the unemployment rate remains stable at 3.9%, down from 4% since February 2022, indicating that the job market is not in crisis but may be returning to normal. .Analysts Christopher Rupkey and Robert Frick noted the volatility and a surprising increase in unemployment benefit claims, suggesting potential additional fluctuations in the job market. Officials at the Federal Reserve, whose goal is to maintain a 2% inflation rate, carefully examine these circumstances.
- The recent increase in unemployment benefit claims in the US suggests a potential economic slowdown.
- April’s modest employment gains and stable unemployment suggest market normalization.
- The Fed could cut rates sooner, possibly increasing investment in Bitcoin as lower rates reduce yields on fixed income assets.
As expectations grow that the Fed will ease monetary policy in response to the weakening labor market, possibly initiating rate cuts as early as September, Bitcoin could benefit. Lower interest rates make riskier assets like cryptocurrencies more attractive.
Bitcoin Price Prediction
(BTC) sees a small decline of 0.20% with the current trading price at $63,000, however, bitcoin price prediction still remains optimistic.
The pivot point at $61,011 sets the stage for determining directional moves, with immediate resistance seen at $64,851. If the bullish momentum prevails, subsequent resistance levels at $67,084 and $69,356 could be tested.
On the other hand, immediate support forms at $58,852, with further downside protection seen at $56,677 and $54,327. The RSI at 54 indicates a relatively neutral market stance, while the 50-day EMA at $62,375 provides underlying support near the $62,000 mark, suggesting balanced but cautious market sentiment.
A decisive move below $62,500 could trigger a significant selling trend, highlighting the importance of this threshold in BTC’s short-term price action.
Unlock initial benefits: 99Bitcoins token pre-sale now available!
O 99Bitcoins pre-sales are ongoing, offering a unique opportunity in cryptocurrency education. By participating in this “learn to earn” platform, users can enhance their knowledge of digital currencies while purchasing $99 BTC tokens, which are both a reward mechanism and a gateway to premium content and community benefits .
With the token price set at $0.00104 each, early investors are provided with a cost-effective entry point to begin growing their experience and investment simultaneously.
So far, the pre-sale has successfully raised $1,169,037, approaching the goal of $1,892,544. With just four days and just over an hour left until the next stage of the price increase, this limited-time offer presents a critical time for investors to purchase $99 BTC and gain access to immediate staking options.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You can lose all your capital.
Fuente