Bitcoin is experiencing a modest rise on Thursday, as the largest digital asset holds onto gains from a recent rally. However, in order to sustain this momentum, additional catalysts are required.
Over the past 24 hours, the price of Bitcoin has increased by less than 1% and now sits above $30,800. It is gradually approaching the recent high of around $31,500 reached in April. This marks the highest point for the largest digital asset since June 2022. The rally above the psychologically important $30,000 mark last month was triggered by applications submitted by BlackRock and other entities for spot Bitcoin exchange-traded funds (ETFs). This raised hopes of a surge in retail and institutional interest in cryptocurrency. Although the approval status of these applications remains uncertain, traders’ sentiment continues to lean toward a bullish outlook.
According to Vineeth Bhuvanagiri, managing director of Emurgo, the commercial arm of the Cardano blockchain, “Bitcoin appears to be consolidating at around $30,000 after being propelled upward by these spot Bitcoin applications. The applications by BlackRock and Fidelity, among others, are widely seen as validating Bitcoin and the overall digital asset industry. However, we have yet to enter a bull-market phase for the broader digital asset industry.”
While the crypto market holds steady for now, many are eagerly awaiting new catalysts that can further propel Bitcoin’s growth and solidify the positive sentiment surrounding digital assets.
The Impact of US Jobs Report on Cryptos
There has been a lack of movement in the crypto market recently, with overall quietness observed across broader markets due to the July Fourth holiday in the United States. However, all eyes are on Friday as the US jobs report is set to be released, and it could be the determining factor for the next significant move in the market. Much like the Dow Jones Industrial Average and S&P 500, Bitcoin is expected to be heavily influenced by this report.
The jobs report holds significant importance as it is one of the final major economic data releases before the Federal Reserve’s upcoming decision on interest rates later this month. In 2022, the Fed’s actions to combat inflation by increasing interest rates posed a significant challenge for risk-sensitive assets. However, with the recent optimism surrounding a potential decrease in inflation and a more accommodative approach from the central bank, Bitcoin has experienced an upward trajectory in 2023.
Minutes from the Fed’s previous policy-setting committee meeting, which were released on Wednesday, revealed overwhelming support for maintaining rates at their current level in June. However, there was also mention of a possible rate hike this month. Therefore, the jobs report holds the potential to solidify market expectations for near-term interest rates and subsequently impact both cryptocurrencies and traditional stocks.
While Bitcoin has been relatively stable, Ether, the second-largest cryptocurrency, experienced a minor dip of less than 1%, currently valued at $1,925. Altcoins, such as Cardano and Polygon, have shown greater weakness with a 2% decrease each. Memecoins, including Dogecoin and Shiba Inu, have also displayed minimal movement with a 1% decrease observed.
In conclusion, the upcoming US jobs report holds substantial significance for the crypto market. Its impact on interest rate expectations will likely determine the direction of cryptocurrencies such as Bitcoin and altcoins like Ether, Cardano, Polygon, Dogecoin, and Shiba Inu. Investors and traders should closely monitor the implications of this report before making any major market decisions.