- Jobs Data and Market Reaction
- Fed Officials Discuss Rate Cuts
- US Dollar Strengthens, Impact on Bitcoin
Bitcoin briefly surged above $55,000 before the US trading session on September 6, driven by weaker-than-expected employment data. However, the price soon reversed, dipping below $54,000 and hitting a new one-month low of $53,806.
Jobs Data and Market Reaction
BTC was initially targeting $57,000 but retraced after the disappointing August Nonfarm payrolls figures raised concerns about the labor market’s strength.
Fed Officials Discuss Rate Cuts
A senior Federal Reserve official suggested it might be time to reduce interest rates. New York Fed President John Williams highlighted that the current monetary policy had balanced the economy and reduced inflation. He recommended lowering the federal funds rate target range, with a decision expected on September 18.
US Dollar Strengthens, Impact on Bitcoin
At the same time, the US dollar strengthened by 0.3% at the open, counteracting Bitcoin’s initial reaction to the macroeconomic data. Despite this, trader Daan Crypto Trades observed ongoing dollar weakness. They predicted a possible drop in the US dollar index (DXY) from its current support level of 101, which could benefit risk assets like Bitcoin. Trader and analyst, Rekt Capital noted challenging conditions for Bitcoin bulls in the short term. He pointed out a downtrending channel on the 4-hour chart and a developing bullish divergence. The Relative Strength Index (RSI) rose while the price declined, suggesting the potential for a trend reversal if Bitcoin could close above key resistance levels.
The cryptocurrency market once again demonstrated its volatility amid macroeconomic data. It will be interesting to watch the dynamics of Bitcoin and other risk assets in the coming weeks as monetary policy evolves.
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