Bitcoin Price Recovery
The price of Bitcoin recovered over the weekend to near $64,000 following the release of positive U.S. jobs data last week. Analysts expect continued optimism in the U.S. economy.
As of 10:30 a.m. on Monday (Hong Kong time), Bitcoin (BTC) climbed 3.06% over the past 24 hours, trading at $63,905, according to The Block’s Bitcoin price page. The cryptocurrency had been subdued for most of the month, dipping near $60,000 last Thursday.
The recovery began after the U.S. released its monthly jobs report on Friday, which showed 254,000 jobs added in September, surpassing the Dow Jones forecast of 150,000.
Min Jung, an analyst at Presto Research, noted, “There is increased optimism for a soft landing, suggesting that the U.S. economy is currently in a ‘Goldilocks’ state.”
Rachel Lucas, a crypto analyst at BTCMarkets, stated that increased liquidity was driven by improving market sentiment and the anticipation of another U.S. Federal Reserve rate cut in November. The CME Group’s FedWatch Tool indicates a 97.9% chance of the Fed lowering rates to a range between 4.50% and 4.75%. Lucas added that this fosters a more risk-on attitude among investors, benefiting assets like Bitcoin.
Another factor supporting the Bitcoin rally is the reduction of Bitcoin held on centralized exchanges, which often correlates with bullish price movements due to lower selling pressure in the market.
Lucas cautioned that to sustain this recovery, Bitcoin needs to break and hold key resistance at $64,500. If successful, a retest of $66,000 could occur.
Both Lucas and Jung pointed out that geopolitical tensions in the Middle East pose a significant risk to the sustainability of Bitcoin’s rally.
Despite October starting slowly, analysts remain optimistic that the recovery could gain pace as the month progresses. Lucas remarked that historically, October has been a strong month for Bitcoin.
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