Bitcoin holds $60,000 level as broader markets mood improves

9 Ağustos 2024

Today’s market analysis on behalf of Samer Hasn, Senior Market Analyst at XS.com

 

Bitcoin has managed to hold above $60,000 since yesterday after a sharp correction that took prices below $50,000.

Bitcoin’s recent notable gains come amid an improvement in market sentiment and a return of risk appetite, with some easing of concerns about the strength of the US labor market with yesterday’s lower-than-expected initial unemployment claims.

The weekly unemployment claims figure came in at 233,000 for the previous week, which was below expectations and the lowest in a month. This figure comes after the shocking labor market data we saw last Friday, which sent shockwaves through the markets and caused huge losses for cryptocurrencies as well.

Yesterday’s figures have reduced bets on the possibility of an emergency interest rate cut of half a percentage point in September, a move that could save the economy from further weakness. While that probability is still the most likely at 55% versus 45% for a 25-basis point cut, according to the CME FedWatch Tool.

This in turn led to significant gains for the stock market, with the NASDAQ 100 closing up more than 3%. Meanwhile, this recovery in risk appetite in the markets was reflected in the largest inflows into Bitcoin ETFs in nearly twenty days yesterday. Yesterday, we saw net positive inflows of more than $192 million, according to SoSoValue.

Altcoins naturally followed Bitcoin’s gains – before returning to losses this morning – which also benefited from what appears to be a legal victory for the XRP developer, Ripple Labs, and turning the page on one of the most prominent legal disputes in the sector.

The ruling reduced the settlement imposed by SEC on Ripple Labs from $2 billion to $125 million in the unregistered security offering.

While investor sentiment around altcoins remains significantly low despite the positive signs, recent gains could be vulnerable to a sharp correction.

The Capriole Investment’s Speculation Index, which compares altcoins performance to Bitcoin, is at its lowest level in over a year at just 5%.

 

Zaid Barem / YMM