Bitcoin continues to be stable on its first trading day in the new month. After the release of new U.S. price data, it temporarily crossed the round mark of $85,000 on Wednesday and thus reached its highest level in a week. The appetite for risk is fueled by macroeconomic optimism in the United States. The hope of a decline in the monetary policy headwinds beyond the Atlantic Ocean is attracting investors back from the sidelines.
Bitcoin
US labor market data in focus on Friday – investors hope for signs of monetary policy easing
On Friday, new US labor market figures will be in focus in particular (14:30). Economists expect a job increase of 90,000 new units, after 162,000 new jobs last month.
The US jobs report is likely to be significant in that it could provide monetary policy impulses that are likely to have an impact on the cryptocurrency market as well.
According to the „Fed-Watch Tool“ of the CME Group, 71.8 percent of market participants now expect a pause in interest rates, while 28.2 percent expect an increase of 25 basis points. The interest rate band itself currently stands at 4.00 to 4.25 percent.
The outcome of the US price data from the previous day is believed to have contributed to the recent interest rate optimism. The core rate for personal consumption expenditures was not as high at 0.2 percent (compared to the previous month), as economists had expected (0.3 percent). This rate is considered the preferred inflation measure by the US Federal Reserve (Fed). The prospect of less sharply rising US interest rates reduces the opportunity costs of holding interest-free assets such as Bitcoin.
