Bitcoin Hits Unprecedented High Amidst Rising US Unemployment and Weakening Dollar
Summary:
Bitcoin (BTC) achieves an all-time high spurred by increasing US unemployment rates suggesting the possibility of interest rate cuts. This unprecedented rise in valuation marks BTC's price peeking over $70,000 for the first time. Meanwhile, the US dollar weakens, reaching nearly its lowest in two months. Future policy timings remain cautiously projected, with only a 3% estimated possibility for an imminent interest rate cut by the Federal Reserve.
March 8 saw a new all-time high for Bitcoin (BTC), driven by US unemployment figures suggesting a potential interest rate cut. BTC/USD charts, sourced from TradingView, revealed dynamic BTC movement that led to the market peak of $70,184 on Bitstamp.
BTC's positive trajectory was fueled by recent job statistics from the US that revealed higher than expected unemployment for February. This suggests a slowing down of inflation due to strict economic policies. The national unemployment rate measured at 3.9% exceeded expectations by 0.2%, while the number of jobs added in January was lower than initially estimated.
Market reactions favoured stocks, according to insights from trading resource The Kobeissi Letter. This was predominantly due to an increase in unemployment and large downward amendments. Bitcoin and other digital currencies mirrored the lift in high-risk assets, pushing BTC above the $70,000 mark for the first time in history.
Notable market observers pointed out the importance of BTC reaching new highs ahead of a block subsidy halving. This could cause a macro cycle peak to arrive earlier than anticipated. One such observer from Mikybull Crypto stated on platform X, "Bitcoin is doing something unprecedented. A cycle peak is impending faster than most expected."
Meanwhile, the US labour statistics induced additional woes on the strength of the US dollar. The dollar fell to its lowest in two months, hitting 102.36 – a nearly 5% drop compared to its peak this year.
The Federal Reserve is set to decide on a potential rate cut on March 20, although market expectations remain highly cautious. CME Group's FedWatch Tool forecasts only a 3% probability of an imminent rate cut.
Throughout the week, Fed officials (Chair Jerome Powell included) have used cautious language when discussing future policy timing.
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Published At
3/8/2024 6:45:25 PM
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