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Bitcoin (BTC) showed little interest in moving higher at the April 7 Wall Street open as fresh United States macro data boosted bets on further interest rate hikes.
Analyst: Fed will keep hiking âuntil something breaksâ
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it drifted around $27,900 on Bitstamp.
U.S. nonfarm payrolls figures, the main macro data focus of the week, came in slightly below expectations, indicating unemployment rising more slowly than predicted.
This in turn raised market expectations that the Federal Reserve would persist in raising interest rates to combat inflation â at the expense of crypto and risk asset performance.
The odds of another 25-basis-point rate hike in May topped 70% on the day, according to CME Groupâs FedWatch Tool, having previously circled 50%.
âAnother strong jobs report. Likely fuels speculation of a 25bps hike in May,â analytics resource Tedtalksmacro reacted on Twitter.
Caleb Franzen, senior market analyst at Cubic Analytics, concluded that this and other recent employment data showed that there were not âany major holes in the labor market data (yet).â
âTheyâre going to keep going until something breaks,â he continued about Fed policy in part of a follow-up analysis on Twitter.
âSo far, the banks are chilling & intervention has worked. Depositors arenât worried. The labor market is still too resilient and inflation is too high, though itâs decelerating. Disinflation is fully underway, but the Fed is bound by their own handcuffs.â
Related: Crypto winter can take a toll on hodlersâ mental health
Just ahead of the report, monitoring resource Material Indicators uploaded order book data from Binance, which showed strengthening liquidity nearer the spot price.
This, as Cointelegraph reported the day prior, was apt to further âdampenâ volatility.
Dollar bounces with stocks
Elsewhere, U.S. equities traded up on the day, with the S&P 500 and Nasdaq Composite Index gaining 0.4% and 0.8%, respectively, at the open.
Related:Â Bitcoin âfaces headwindsâ as US money supply drops most since 1950s
The U.S. dollar managed an uncharacteristic copycat bounce, meanwhile, heading back above the 102 mark to hit its highest levels in several days.
â$USD strength still showing up fresh higher-high after the NFP report,â analyst James Stanley wrote in part of a Twitter response.
â$DXY reacting with strength to data that isnât necessarily all that strong.â
The views, thoughts and opinions expressed here are the authorsâ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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