Bitcoin made a remarkable move, surging to $44,000 following the Wall Street opening on December 8, as the latest United States employment data quashed market speculations of imminent interest rate cuts.
The developments were closely monitored using data from Cointelegraph Markets Pro and TradingView, as the crypto market reacted to fresh signals of inflation in the US economy.
The official release from the US Bureau of Labor Statistics showed that nonfarm payrolls exceeded expectations, with 199,000 jobs added compared to the anticipated 190,000.
Additionally, the unemployment rate was lower than forecast, coming in at 3.7% instead of the predicted 3.9%.
These figures suggested that the full impact of the Federal Reserve’s monetary tightening had yet to materialize, leading to a nervous response from the markets.
Before the release of the November jobs report, there was a 60% likelihood of rate cuts commencing in March 2024.
However, after the latest data, the odds of rate cuts starting in January 2024 plummeted from 16% to just 6%.
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Notably, data from CME Group’s FedWatch Tool indicated that the probability of any changes to the interest rate at the upcoming Federal Reserve meeting was almost zero.
The US Dollar Index (DXY) experienced significant volatility in response to the data, briefly reaching its highest levels since November 20 before retracting gains and trading at 103.8 at the time of reporting.
Interestingly, while gold prices dipped by 0.8%, Bitcoin managed to hold its ground despite reduced expectations of imminent interest rate cuts.
The largest cryptocurrency remained within a multi-day trading range as traders monitored for signs of a continuation in the current trend.
Prominent analyst Matthew Hyland commented on the situation, stating, “Bitcoin still consolidating in an uptrend and holding strong after the recent move,” with clear support seen around the $43,000 level.
Another trader and analyst, Daan Crypto Trades, pointed out significant liquidity zones surrounding the current Bitcoin price, particularly at $42,900 and $43,800.
Furthermore, the crypto market’s attention remained focused on altcoins versus Bitcoin, with Ether (ETH) and Solana (SOL) taking the lead overnight.
There was renewed anticipation of a potential “alt season” making a comeback, with Michaël van de Poppe, the founder and CEO of MN Trading, highlighting that “Bitcoin still consolidating around $43K, while Ethereum is gaining more momentum.”
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