The crypto market turned green as Bitcoin rebounded strongly on Saturday morning sparking hopes that the worst of the meltdown might be over
BTC surged almost 5% to briefly above $63,000 today’s early trade following a cooler-than-expected U.S. April jobs report that eased concerns about higher interest rates. At press time bitcoin was changing hands at $63,100, up 6% with a market valuation of $1.24 trillion
Arthur Hayes, former CEO of BitMEX, stated that the pioneer crypto asset has probably bottomed out at this week’s low of $56K. However, he cautioned investors not to expect a quick return to the March highs, but rather a gradual increase over the next several months as markets moderate.
“Did bitcoin hit a local low […] earlier this week,” Hayes responded. “Yes,” was his response. “I expect prices to bottom, chop, and begin a slow grind higher.”
He anticipated “a range-bound price action between $60,000 and $70,000 until August.”
In the same time frame, ether recovered the $3,100 mark and saw a 5% increase, while the two largest altcoins, dogecoin and Shiba Inu, saw about 10% increases. In response to the most recent surge in the price of bitcoin, traders anticipated that higher levels would hold as support, making the week’s plunge to two-month lows appear to be an involuntary reaction.
According to the government’s Nonfarm Payrolls data, the U.S. economy added 175,000 jobs in April, fewer below the expert expectation of 245,000 and the 315,000 jobs gained the month before. Additionally, the data revealed that the U.S jobless rate increased somewhat from 3.8% in March to 3.9%, thus elevating the appetite for risk
CME FedWatch data highlighted market participants projected a 68% chance of at least one rate cut by September after the announcement, up from 57% a week earlier.
For the first time, Grayscale Investments have seen net positive inflows for the Grayscale Bitcoin Trust (GBTC). This follows almost four months of nonstop withdrawals following its January conversion to a Bitcoin exchange-traded fund (ETF).
According to Farside’s early data, Grayscale’s GBTC had inflows of $63 million on May 3 after outflows of roughly $17.5 billion since the introduction of the 11 spot Bitcoin ETFs on January 11.
Franklin Templeton’s Bitcoin ETF (EZBC), among the other funds tracked thus far, experienced its largest-ever inflow of $60.9 million.
Bitwise Bitcoin Fund (BITB) ranked second with $102.6 million, followed by Invesco Galaxy Bitcoin ETF (BTCO) with $33.2 million. The day’s top inflows were driven by the Fidelity Wise Origin Bitcoin Fund.