Bitcoin Nears $69,000, Buoyed by Positive U.S. Economic Indicators
Summary:
On May 30, Bitcoin reached a local high of $68,800, inching closer to the $69,000 mark, pushed by optimistic macroeconomic data from the U.S. Encouraging GDP figures and jobless claims painted a brighter economic narrative, suggesting financial conditions could ease sooner than expected. Meanwhile, according to CME Group's FedWatch Tool, the market does not anticipate an interest rate increase before September with a slim 1.1% chance of a cut during the June 12 Federal Reserve meeting. Bitcoin's resistance seems to surround the $69,000 mark, while bid support is strengthening at $66,800.
Bitcoin edged closer to the $69,000 mark as Wall Street opened for trading on May 30, buoyed by positive financial data from the U.S. encouraging riskier assets. Bitcoin's market high reached $68,800 on the Bitstamp trading platform, according to data from Cointelegraph Markets Pro and TradingView.
Pleasing first quarter GDP data from the U.S adds credence to a positive risk-asset narrative suggesting financial conditions could loosen sooner than expected. Furthermore, weekly initial jobless claims of 219,000, although slightly above the anticipated 217,000, also painted a brighter economic picture.
Skew, a well-followed trader on X (formerly Twitter), pointed out both the U.S bond yields and strength of the dollar had responded negatively to the news. The U.S dollar index (DXY) fell by 0.33% on the day at the time of writing.
The chance of an interest rate hike occurring any sooner than September appears unlikely, according to CME Group's FedWatch Tool. The upcoming Federal Reserve meeting on June 12 only has a 1.1% chance of surprise cut.
Recent data from CoinGlass showed changes in liquidity conditions with Bitcoin eating into resistance around the $69,000 mark, as economic reports were revealed. On the flip side, there were signs of strengthening bid support at $66,800.
Mosaic asset, a trading firm, added bitcoin to its list of assets to watch out for an impending breakout at the start of the week. Its latest newsletter, "The Market Mosaic," dated May 23, suggested easier financial conditions could trigger further gains for risk-on assets. It also proposed that any potential pullbacks could simply be a pause in the bull market trend.
However, the article concluded that every investment and trading move involves risk, and as such recommended readers to conduct their own research.
Published At
5/30/2024 5:39:51 PM
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