The world's leading cryptocurrency is gaining strength following the weak US jobs report, which could mark the beginning of a new bullish era.
On Wednesday, the price of bitcoin reached a remarkable increase of 3%, trading at USD 98,725.75, as the US labor market revealed lower than expected growth in the private sector. With the cryptocurrency holding above the critical support of USD 91,600, the market is optimistic about the possibility of a future rate cut by the Federal Reserve.
On Wednesday, the price of bitcoin reached a remarkable 3% increase, trading at $98,725.75, as the US labor market showed lower-than-expected growth / TradingView
US private sector employment grew by 146,000 jobs, according to ADP data, although this number fell short of expectations of 150,000. In addition, the previous figure was revised downwards, from 233,000 to 184,000, marking lows since July 2021. This weakness in the labor market could make it easier for the Federal Reserve to move forward with its plan to cut interest rates, which generally benefits bitcoin and risk assets, including cryptocurrencies.
Bitcoin Technical Analysis
The price of bitcoin found resistance in the $100,000 range, a level it has not been able to overcome in recent weeks. However, after a sideways period, the cryptocurrency regained momentum and remains above the 25-, 50-, and 200-period moving averages, suggesting bullish sentiment in the market.
Institutional Flows and Trends
Institutional capital continues to flow into bitcoin, with Coinglass data indicating a positive net flow into cryptocurrency ETF products. On Wednesday, inflows reached $659.10 million, bringing the total to $676 million, $422.10 million, and $318.60 million over the past three days, reflecting renewed institutional interest.
Open Interest and Activity in the Spot Market
Open interest in Bitcoin rebounded, reaching $61.28 billion, indicating a slight increase in interest in the cryptocurrency. However, in the spot market, a net outflow of $126.03 million was recorded over the past 24 hours, suggesting persistent volatility in market activity.
As bitcoin approaches the psychological $100,000 mark again, institutional interest and changes in U.S. monetary policy will remain key factors to watch. The combination of a weak labor market and a steady flow of capital into cryptocurrencies could signal that we are facing a significant trend change.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investing in cryptocurrencies involves risks and readers should conduct their own research.
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