According to the former CEO of Bybit, Bitcoin is expected to trade between $60,000 and $70,000 in the coming months.
• Bitcoin rose nearly 5% on weak U.S. jobs data.
Analysts at Coinbase say the outcome of the Federal Reserve meeting means the US dollar’s strength has likely peaked and should support cryptocurrencies.
Cryptocurrencies rallied on Friday as the price of Bitcoin (BTC) rose, raising hopes that the worst of the decline may be over.
Bitcoin rose about 5% in the U.S. morning hours, briefly topping $62,000, after a weaker-than-expected U.S. jobs report in April eased concerns about rising interest rates. At the time of writing, Bitcoin was up 4.4% at $61,600, outperforming the broader CoinDesk 20 Index (CD20) by 3% over the past 24 hours.
Ether (ETH) has hit $3,000 again, up 3% year-to-date, while altcoin giants Dogecoin (DOGE), Shiba Inu (SHIB) and Near Protocol NEAR are up 5-10%
The increase came after the U.S. economy added 175,000 jobs in April, compared to an analyst consensus of 245,000. It was also noted that the unemployment rate gradually increased to 3.9 percent from 3.8 percent in March.
Following the report, market participants now believe the probability of at least one rate cut by September is 68 percent, up from 57 percent the previous week, according to CME FedWatch data.
Bitcoin’s correction since mid-March has coincided with growing concerns that the Federal Reserve has taken a more hawkish stance amid weak inflation in recent months. This pushed the US dollar index to its highest level since November, which is often a bearish signal for risky assets like cryptocurrencies.
In addition to the weak employment report, Coinbase analysts David Hung and David Duong said that while policymakers have shown no interest in cutting interest rates, the central bank’s balance sheet, often described as quantitative, leads us to this week’s FOMC meeting It is mentioned that the rate of interest rate has decreased. Campaign to tighten exits (QT) – as a sign of disbelief.
“We believe the larger-than-expected FOMC statement suggests that the dollar’s bullish momentum has peaked against the cryptocurrency pair,” Han and Duong wrote.
Bitcoin is likely to hit the low of $56,000 this week, Arthur Hayes, former CEO of the Bitmax exchange, said in a new article early Friday morning. “Did Bitcoin hit a regional bottom earlier this week?” asked Hayes over the next few months. He finally said: Yes. “We expect prices to bottom, consolidate and slowly rise again.”
Looking ahead, he predicted: “Prices will rise to the high level of $60,000 and then continue to move in the $60,000 to $70,000 range until August.”