Major cryptocurrencies experienced a rally on Monday following the release of softer-than-anticipated US jobs data, which revived expectations that the Federal Reserve might consider easing rates within the year.
World’s largest cryptocurrency Bitcoin experienced a 1.5% increase, reaching $64,340 on Monday, whereas the second-largest digital token, Ethereum, saw a 3% rise, reaching $3,184.
Furthermore, various other prominent altcoins saw increases in value, with BNB climbing by 1.9%, Solana by 2.8%, XRP by 1.3%, Dogecoin by 2.2%, Toncoin by 6.8%, Shiba Inu by 1.4%, and Polkadot by 4.5%.
Also read: Bitcoin falls 5% to $57,000 ahead of Fed decision, slumps 16% in April
The employment report from the Labor Department indicated that the U.S. economy saw a lower-than-anticipated increase in job numbers, accompanied by a slight uptick in the unemployment rate and an unexpected slowdown in wage growth.
“The crypto market has rebounded from last week’s dip on the back of the recent US jobs data that was much lower than the forecasts and signals towards a slowing economy. With a slower economy, inflation is bound is slow down leading to lower interest rates. The top 10 cryptos by M.Cap. are trading in green. Additionally, recent market trends indicate a balance between price shifts and liquidations, signaling market stabilization. BTC seems to be consolidating around $64k. However, the key resistance level remains around $65k,” said Parth Chaturvedi, Investments Lead, CoinSwitch Ventures.
According to data provided by CoinMarketCap, the combined volume of all stablecoins currently stands at $44.5 billion, representing 90.46% of the total 24-hour trading volume in the cryptocurrency market.
Over the past day, the market capitalization of Bitcoin surged to $1.265 trillion. As per CoinMarketCap, Bitcoin currently holds a dominance of 53.23%. Meanwhile, the volume of BTC transactions in the last 24 hours experienced a decline of 7.7%, reaching $18.2 billion.
Is it right time to invest?
Experts say that the ongoing rally has a promising outlook for investorts, however, should not hurry in investing.
Also read: Bitcoin Halving: World’s biggest crypto reaches supply milestone, trades over ₹58 lakh
“With over 15 million transactions in just the last month, Bitcoin’s momentum has received a notable boost from the halving day. The ongoing upward trend suggests a promising outlook for investors, however investors must not give into FOMO and use the dollar cost averaging strategy when it comes to investing in crypto,” Avinash Shekhar, CEO and Co-founder, Pi42, told Livemint.
Shekhar further added, “Bitcoin at the moment is undergoing robust transactional capabilities despite challenges from competitors like Ethereum thus it is crucial to carefully evaluate the overall market conditions, and their own risk appetite before making any decisions.”
Bitcoin’s rebound can be traced to several key factors, particularly significant ETF activity. In just one day the all 9 ETFS accumulated a staggering 6,124 Bitcoin, amounting to approximately $380 million. ETFs now hold a total of 8,24,600 Bitcoin.
“Bitcoin’s resilience against bearish pressures has been remarkable. Despite fluctuations, Bitcoin has consistently demonstrated strength, with bullish trends persisting. Whales have capitalized on these trends, consistently buying during market dips. This sustained buying pressure has helped absorb selling pressure and support Bitcoin’s upward trajectory.
Looking ahead, Bitcoin’s trajectory remains bullish, with potential for further gains. Analysts predict a possible breakout towards $90,000, with critical levels around $71,000 likely to be tested in the near future. Additionally, the involvement of heavyweight institutions like BlackRock, with discussions reportedly underway with sovereign wealth funds, underscores the growing legitimacy and institutional adoption of Bitcoin,” Rajagopal Menon, VP, WazirX, told Livemint.
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