Bitcoin (BTC) continues to consolidate within familiar ranges close to $29,000 ahead of the release of key US jobs data on Friday.
The data, which is expected to show that the pace of hiring and wage growth in the US remains robust, and that the unemployment rate remains close to historic lows, come on the heels of a 25 bps rate hike from the US Federal Reserve earlier this week.
The US central bank lifted its Federal Funds target range to 5.0-5.25% as broadly expected by market participants, marking 500 bps worth of tightening in its last 10 meetings.
The Fed has spent the last year tightening financial conditions in order to get a surge in US inflationary pressures that began in 2021 under control.
Bitcoin didn’t see much volatility in wake of the meeting and remains well within the $27,000-$31,000ish range that has been in play since March.
Recent Bitcoin price action suggests the market is in a state of indecision as to where Bitcoin is headed next.
Is a break back above $30,000 on the cards, or a drop back to support in the $25,000 area?
Well, one of the world’s most important asset classes might be giving traders a clue – that is, the US Treasury market.
While upcoming US jobs data is likely to show that the US labor market remained in good health in March, cracks are already appearing.
The latest US JOLTs survey released earlier this week showed job openings in the US falling to fresh two-year lows, with weaker labor demand a lead indicator of eventual job losses.
And expectations for a weaker US labor market later this year add to the reasons why this week’s hike from the Fed was likely the last of this tightening cycle.
Other sectors of the US economy (like the manufacturing sector, which ISM PMI survey data suggests is in
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