During today’s trading session, the price of bitcoin is regaining bullish momentum and recouping the losses it suffered earlier in the week. For the first time in months, macroeconomic forces are once more having a positive impact on cryptocurrency.
The price of Bitcoin is currently $21,000 and has increased by 4% over the past day and seven days, respectively. Similar strength is being shown by the other top 10 cryptocurrencies, with Dogecoin (DOGE) and Binance Coin (BNB) driving the altcoin surge.
The price of bitcoin breaks through resistance levels
According to data, investors with orders totaling around $100,000 have increased their buying pressure. These Bitcoin “whales” are responding favorably to today’s U.S. economic data, which denotes a downturn in the employment situation in this nation.
BTC whales interpret the unemployment rate, which came in at 3.7% and is 0.2% higher than expected, as evidence that the FED’s rate increases may be having an impact. Be aware that a trend cannot be established from a single report, yet this market responds to all data points, regardless of their validity.
The U.S. Federal Reserve (Fed) is working to reduce dollar inflation. By raising interest rates and shrinking its balance sheet, the financial institution is carrying out a program of tightening the financial system.
The Fed’s policies appear to be working for the first time in several months, or at least the data suggests this is the case. Ironically, negative news favours the price of Bitcoin and risky investments in the current economic climate. Regarding the most recent price movement, another analyst said the following:
Unemployment is increasing, which is exactly what the Fed wants. Markets are responding positively to bad news, which is good. It’s unfortunate that we’ve reached the point where they want people to lose their employment in order to combat inflation.
Aside from economic data, the US dollar is going downward and may test prior support after months of drifting upward. The upward momentum of the Bitcoin price is being fueled by this downward price movement.
