Top Crypto Gainers Today on Uniswap – SNAPCAT, PEPETA
Bitcoin (BTC) is consolidating in the mid-$34,000s, as market participants digest Friday’s weaker-than-expected US jobs report, which caused a dump in US government bond yields and the US Dollar Index (DXY), and a pump in US stock prices.
Weaker yields/USD and stronger stock prices tend to boost crypto prices, but Bitcoin is still trading close to 1.0% lower on the day as a result of profit-taking in wake of the cryptocurrency’s recent stunning rally from October’s lows in the $26,000s.
Propelling this upside was optimism about the expected upcoming approval of spot Bitcoin Exchange Traded Funds (ETFs) in the US, though as macro traders begin heavily betting that the Fed’s interest rate tightening cycle is over, few would be surprised to see Bitcoin vault even higher from here.
That’s because Bitcoin, and crypto more broadly, tend to perform well in an environment of easing financial conditions (i.e. yields and the US dollar falling and stocks rising on bets of easier Fed policy ahead).
Of course, it’s rarely that simple with financial markets, especially crypto.
Technicians wouldn’t be surprised if Bitcoin pulled back to prior yearly highs just under $32,000, wiping out some of the weak hands that FOMOed into the market in October as they saw the price vaulting higher, and wiping out some of the overly greedy/leveraged short-term bulls.
But given the above-noted optimism about spot Bitcoin ETFs, which feed into the broader theme of institutional adoption, and assuming that macro conditions continue to improve, any such pullbacks are likely to remain shallow, with traders likely to also cite 2024’s halving event as another key reason to buy the dip.
Looking across the major blue chip altcoin market, the picture is mixed, which
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