Bitcoin Surges 10% to 10-Week High on Strong US Jobs Data
1min read Bitcoin (BTC) reached a new 10-week high following the release of US nonfarm payrolls data, which exceeded expectations. The data indicated that 177,000 jobs were added in April, significantly higher than the forecast of around 140,000. This strong labor market performance suggests resilience to tight financial conditions, including raised interest rates, which could imply that the US Federal Reserve has more leeway to maintain current conditions for a longer period.
Despite the potential for tighter financial conditions, both the S&P 500 and Nasdaq Composite Index saw gains of over 1.3% on the day. This upward movement in the stock market, along with Bitcoin's price surge, came as US President Donald Trump reiterated his calls for the Federal Reserve to lower interest rates. Trump's stance on rate cuts has been consistent throughout his implementation of trade tariffs, and he cited various inflation markers to support his argument for lower rates.
Traders and analysts in the Bitcoin community are closely monitoring the market's response to the recent price increases. Popular trader Skew noted that sellers have been defending the $97,200 level, and shorts continue to scale into the price. Daan Crypto Trades warned that the current local highs could be a ploy to take liquidity before a reversal, suggesting that a return to the $93,000 to $96,000 range could indicate a liquidity grab. Another trader, TheKingfisher, referenced bid liquidity as a reason for a potential short-term dip to $95,000.
Rekt Capital, a trader and analyst, provided an end-of-week BTC price target requirement of $99,000. He explained that if Bitcoin continues to hold above $93,500, the price will be positioned for a move across the range. However, it is crucial that BTC breaks the black Lower High resistance within this range, which is positioned at approximately $99,000 for the week.
The strong labor market data and Trump's calls for rate cuts have created a complex environment for Bitcoin and other risk assets. While the labor market's resilience could imply tighter financial conditions, the potential for lower interest rates and the overall bullish sentiment in the stock market have contributed to Bitcoin's price surge. Traders and analysts will continue to monitor the market's response to these developments, with a particular focus on the $97,200 level and the potential for a liquidity grab.
