Connect with us

Hi, what are you looking for?

Crypto

Bitcoin May Return To $20K As US Unemployment Hits 54-Year Low

Image Source: Dmitrii D / Shutterstock

Bitcoin (BTC) fell prior to the Feb. 3 Wall Street open as fresh United States economic data came in “hot hot hot.”

“Think again” over U.S. recession

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it erased gains from earlier in the day to center on $23,000 support.

The pair reacted negatively to U.S. unemployment data for January, which beat expectations so considerably that overall jobless figures fell to their lowest since 1969.

Non-farm payrolls (NFP) data likewise outperformed, while average hourly earnings conformed to forecast 0.3% growth.

“HUGE beat in NFP,” popular analytics account Tedtalksmacro responded on Twitter.

Returning to predictions from the day prior, Tedtalksmacro eyed a potential opportunity to increase Bitcoin exposure, given the latest come-down, which it said could take BTC/USD all the way to $20,000.

“An opportunity to reload on this news, potentially,” a further tweet added.

Bitcoin’s cold feet come from the implication that a stronger-than-forecast labor market allows the Federal Reserve to maintain tighter, less liquid monetary conditions for a longer period of time.

“US economy sliding into a recession? Well, think again. At least not in the near term,” economist and analyst Jan Wüstenfeld continued.

$25,000 Bitcoin now “crowded trade”

As Cointelegraph reported, the Fed raised interest rates by 0.25% this week, in line with almost all expectations, while Chair Jerome Powell caused excitement by using the term “disinflation” in accompanying comments.

BTC/USD thus spiked above $24,000 for the second time in as many days, with market participants still hopeful of a trip to $25,000 before a more significant retracement.

“BTC has had a clean breakout above its macro downtrend line + a backtest,” investment research resource Game of Trades stated.

“The next big resistance to clear is the $25k region.”

Popular trader Crypto Tony nonetheless acknowledged that that target may no longer materialize.

“$25,000 is my main target, but I am seeing now a lot of people asking for this, and is becoming a crowded trade,” he wrote in part of a fresh update on the day.

Image Source: Dmitrii D / Shutterstock

You May Also Like

News

In the past year, Peloton, manufacturers of stationary exercise bicycles and treadmills, has been experiencing some severe financial difficulties. The company went through a...

News

While the ongoing supply chain problems affecting the global economy have had the expected effects, they’ve also had some decidedly unexpected effects. Specifically, many...

News

As gas prices continue to rise and consumer confidence drops, not to mention the ongoing war in Ukraine, the European economy is taking a...

News

As the environmental need for electric vehicles becomes more pressing, and the car-buying public becomes more eager for them, automotive manufacturers are getting ready...

News

This morning, Coinbase CEO Brian Armstrong sent a mass email out to his company informing everyone that, as stock and crypto prices slip and...

News

Last week, a former cybersecurity expert for Twitter, Peiter “Mudge” Zatko, released a whistleblower report on the social platform. In his report, Zatko cited...

News

Zelle is a peer-to-peer payment app and service that can be used by individuals to send and receive money, in a similar vein to...

News

Earlier this week, following the third-term victory of Chinese President Xi Jinping, market shares in Hong Kong experienced a sudden, violent sell-off. Xi’s controversial...