The cryptocurrency market turned green on Saturday morning as Bitcoin made a significant comeback, raising hopes that the worst of the crisis may be behind us.
In early trading today, Bitcoin saw a nearly 5% increase, momentarily surpassing $63,000, as a result of a less optimistic U.S. jobs data for April that allayed fears of rising interest rates. Bitcoin was trading at $63,100 at the time of publication, up 6%, with a $1.24 trillion market valuation.
Former BitMEX CEO Arthur Hayes said that the groundbreaking cryptocurrency asset has most likely bottomed out at this week’s $56K low. He did, however, warn investors not to anticipate a sudden bounce back to the highs of March, but rather a slow gain over the course of the next few months as markets level down.
Hayes said, “Did bitcoin hit a local low earlier this week?” “Yes,” was his answer. “I anticipate a bottom, a chop, and a gradual grind higher in prices.”
“A range-bound price action between $60,000 and $70,000 until August,” was what he predicted.
While the two biggest altcoins, dogecoin and Shiba Inu, witnessed increases of roughly 10% during the same period, ether recovered the $3,100 threshold and saw a 5% growth. Traders expected higher levels to hold as support in response to the most recent spike in the price of bitcoin, thus this week’s decline to two-month lows looks to be an involuntary reaction.
The government’s Nonfarm Payrolls statistics indicate that the U.S. economy added 175,000 jobs in April, which is less than the 315,000 jobs gained the previous month and the 245,000 jobs that experts had predicted. Furthermore, the data showed that the unemployment rate in the United States rose slightly from 3.8% in March to 3.9%, which enhanced people’s willingness to take risks.
Following the decision, market participants estimated a 68% chance of at least one rate cut by September, up from 57% a week earlier, according to CME FedWatch data.
Grayscale Investments has observed net positive inflows for the Grayscale Bitcoin Trust (GBTC) for the first time. This comes after its conversion to a Bitcoin exchange-traded fund (ETF) in January, which resulted in nearly four months of continuous withdrawals.
Grayscale’s GBTC saw inflows of $63 million on May 3 following outflows of about $17.5 billion since the launch of the 11 spot Bitcoin ETFs on January 11, based on preliminary data from Farside.
Among the other funds monitored so far, Franklin Templeton’s Bitcoin ETF (EZBC) saw its largest-ever inflow of $60.9 million.
With $102.6 million, Bitwise Bitcoin Fund (BITB) came in second, and Invesco Galaxy Bitcoin ETF (BTCO), with $33.2 million, came in third. The Fidelity Wise Origin Bitcoin Fund was the main driver of the day’s inflows.
