The Bitcoin course began to grow a lot yesterday and today is approaching ATH. But what drives the assault of bulls?
The bitcoin course is growing
The Bitcoin course broke the level of USD 110,000 for a moment. Currently, it is slightly lower.
Where did this break out? It is possible that the market simply decided that Bitcoin is “cheap” and it is not worth waiting for a larger discount. In addition, investors learned data regarding the labor market – for the first time in over two years in the private sector a decrease in the number of jobs was registered. A total of 33 thousand disappeared from the market. full -time jobs. The largest decreases on services, health care and education. The problem was affected by particularly small and medium -sized enterprises. The average monthly increase in employment during the quarter was only 18.7 thousand, which is the least since the explosion of coronaviru pandemic.
If it’s bad, why is it okay?
These data should rather worry, so why did the cryptocurrency market have optimism? The point is that the Fed is not only responsible for inflation, but also the economy, including the labor market. The worse the data regarding the full -time jobs, the more motivation for percentage foot cuts, which investors are waiting for, especially Etheru and Altcoins. Simply lower feet mean cheaper capital to invest, which will translate into greater demand for assets, and thus increases.
According to the Fed Watch Tool’s data, the Fed will reduce percentage by the end of the year. At 75 pb and there are 3 cuts ahead – each of 25 PB.
In addition, remember that we also have to replace the president of the Fed – Jerome Powell’s term of office will end in less than a year, and someone chosen by Donald Trump is replaced. The American president has long been pushing the current bosses of the bank to reduce the percentage rates. – The new board of the Fed will certainly pursue a policy consistent with what the White House does. This can lead to the extending of the cycle, which I have already written in the article Is a supercycle on cryptocurrencies? Learn how the market is changing!
The chart below shows how much field to show off in terms of foot reductions:
