Rising investor bets on a September Fed rate cut fueled buyer demand for US BTC-spot ETFs.
US Jobs Report and Fed Rate Cut Bets Drive Demand
On Friday, the US Jobs Report fueled investor bets on a September Fed rate cut. Softer wage growth and a higher unemployment rate suggested the Fed may need to begin considering labor market conditions. A deteriorating US labor market could retrigger investor fears of a US hard landing.
Arch Capital Group Global Chief Economist Parker Ross reacted to the US Jobs Report, stating:
“It’s now looking increasingly likely that we’re approaching an inflection point for the labor market and the Fed should sit up and take notice.”
For context, the US unemployment rate increased for the third consecutive month to 4.1%, the highest since November 2021.
However, avoiding a hard landing and a more dovish red path may drive buyer demand for US BTC-spot ETFs and counter the Mt. Gox effect.
BTC-spot ETF investors may consider the anticipated Mt. Gox supply a buying opportunity. A surge in BTC supply could give BTC-spot ETF buyers an attractive entry price in a Fed monetary policy easing cycle.
However, it could be a challenging weak ahead, with the US CPI Report and Fed Chair Powell Testimony on focus.
Fed Chair Powell could offer optimism toward a Fed rate cut during testimony on Capitol Hill (Tues/Wed).
Nevertheless, a hotter-than-expected US CPI Report (Thurs) could sink investor bets on a September Fed rate cut and buyer demand for BTC.
Economists forecast the US core inflation rate to remain at 3.4% in June, well above the 2% target.
In conclusion, the US economic calendar may influence buyer demand for US BTC-spot ETFs. Rising bets on a September Fed rate cut could counter a supply surge from Mt. Gox repayments to creditors.
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Technical Analysis
Bitcoin Analysis
BTC sat below the 50-day and 200-day EMAs, confirming the bearish price trends.
A BTC break above the 200-day EMA would support a move to the $60,365 resistance level. A breakout from the $60,365 resistance level could give the bulls a run at the 50-day EMA and the $64,000 resistance level. However, selling pressure could intensify at the $64,000 resistance level. The 50-day EMA is confluent with the resistance level.
The Fed rate path, its influences on the US BTC-spot ETF market, and supply trends need consideration.
On the other hand, a fall through the $55,000 handle could signal a drop to the $52,884 support level.
With a 34.31 14-Daily RSI reading, BTC could fall to the $55,000 handle before entering oversold territory.
This article was originally published by a www.fxempire.com . Read the Original article here. .
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