- Bitcoin has hit a new all-time high above $70,000, fueled by positive reaction to recent US jobs data showing easing inflation and higher unemployment.
- The latest jobs figures beat forecasts, with unemployment rising to 3.8% in February from 3.7% in January. This sent stocks and Bitcoin higher while weakening the dollar.
- Despite the jobs data, market expectations remain hawkish regarding Fed interest rate hikes. The odds of a March rate cut are still only around 3% according to CME Group’s FedWatch tool.
The price of Bitcoin has reached a new all-time high above $70,000, fuelled by positive reaction to the latest US jobs data. The data showed unemployment beating forecasts in February, indicating easing inflationary pressures from restrictive economic policies. This news sent stocks and risk assets like Bitcoin surging while weakening the US dollar.
Bitcoin Price Action
Bitcoin bulls propelled the market into price discovery, with BTC reaching $70,184 on Bitstamp. Data from Cointelegraph Markets Pro and TradingView followed the buoyant price action as Bitcoin set a new record high. The largest cryptocurrency gained over 5% on the day to crack the $70,000 level for the first time.
Key Highlights from US Jobs Data
The US unemployment rate for February came in at 3.8%, higher than the expected 3.7%. January’s figures for jobs added were also revised lower. This jump in unemployment and downward revisions were seen as supporting the case for the Federal Reserve to cut interest rates.
Market Reaction
The reaction so far has been to send stocks and risk assets like Bitcoin higher, as inflationary pressures appear to be waning. The US Dollar Index (DXY) fell nearly 5% from its year-to-date highs, dropping close to its lowest level in two months. Bitcoin and altcoins followed equities higher in the risk-on environment.
Looking Ahead
The Federal Reserve’s next decision on interest rates is due on March 20. Despite the latest jobs data, market expectations remain hawkish, with the odds of a rate cut still only around 3% according to CME Group‘s FedWatch tool. During the week, Fed officials including Chair Jerome Powell maintained their conservative policy outlook.
Conclusion
Bitcoin’s surge to $70,000 came uniquely before its next halving, in contrast to previous cycles. This could signal an earlier-than-expected macro cycle top. Meanwhile, the US dollar’s decline underscores the jobs data’s significance in weakening the case for further Fed rate hikes in the near future.
