On March 8, Bitcoin soared to unprecedented heights, propelled by the U.S. unemployment data which strengthened the argument for potential interest rate cuts.
The cryptocurrency reached an all-time high of $70,184 on Bitstamp, as per data from Cointelegraph Markets Pro and TradingView, amidst optimistic market movements encouraged by the latest jobless statistics from February.
These figures surpassed expectations, suggesting that inflationary pressures might be diminishing due to strict economic policies.
The national unemployment rate was reported at 3.9%, a slight increase from predictions, while the job growth numbers for January were adjusted downwards.
The Kobeissi Letter, a trading analysis platform, noted that the market responded positively, with stocks climbing.
This upward trend was attributed to the increased unemployment rate and significant revisions to job additions.
The cryptocurrency market, including Bitcoin and various altcoins, rallied along with stocks, marking a significant moment as Bitcoin crossed the $70,000 threshold for the first time.
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Market analysts highlighted the importance of this milestone occurring ahead of a scheduled block subsidy halving, suggesting that Bitcoin could reach its macro cycle peak sooner than anticipated.
Mikybull Crypto, a prominent voice in the market, remarked on social media platform X (formerly Twitter), “Bitcoin is doing what it has not done in history. Cycle top is coming faster than what people projected.”
Additionally, the jobs data indicated a weakening U.S. dollar, with the U.S. dollar index (DXY) dropping to near its two-month low at 102.36, down almost 5% from its peak earlier in the year.
This decline in dollar strength further fueled speculation regarding the Federal Reserve’s next moves.
Although the Fed’s decision on interest rates is awaited on March 20, expectations remain largely hawkish, with the CME Group’s FedWatch Tool estimating a mere 3% chance of an interest rate cut.
Throughout the week, Fed officials, including Chair Jerome Powell, have reiterated a cautious stance on future monetary policies, maintaining conservative language despite the optimistic market trends spurred by the latest economic indicators.
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