Bitcoin Surges to $67.5K with 2% Price Gain alongside US Jobless Claims

Bitcoin (BTC) experienced a 2% rebound on April 4 following positive signals from the United States Federal Reserve. The Federal Reserve indicated that it may implement interest rate cuts at some point this year, which boosted confidence in risk assets. BTC reached local price highs of $67,511 on Bitstamp during the Wall Street open. This rally aligned with the upward movement of U.S. stock indices, while gold cooled off after reaching new all-time highs above $2,300.

Fed Chair Jerome Powell’s recent comments on economic policy further supported the positive sentiment towards BTC. Powell stated that interest rate cuts, which benefit risk assets like Bitcoin, could occur before the end of 2024. He also highlighted the likelihood of lowering the policy rate at some point this year.

The Federal Open Market Committee (FOMC) meetings, the next of which is scheduled for May, will play a significant role in determining the timing of any rate cuts. According to CME Group’s FedWatch Tool, the probability of a 0.25% rate cut in either the May or June meeting was only 61% at best.

The latest initial jobless claims data in the United States exceeded expectations, which contributed to the overall market movement. The slightly higher numbers, with 221,000 claims compared to the projected 214,000, added to the upward momentum.

BTC’s market structure also provided confidence to traders. The 200-period exponential moving average (EMA) on the 4-hour timeframes served as a support level, according to popular trader Pierre. Another trader, Jelle, looked to the daily chart and found promising signals for potential further upside movement. Bitcoin’s relative strength index (RSI) crossed above the key 50 point at the daily close, indicating a bullish trend. This positive divergence on the daily chart led Jelle to believe that BTC could reach $82,000 in the future.

Bitcoin’s rebound was driven by the Federal Reserve’s intention to implement interest rate cuts and the positive market sentiment towards risk assets. Traders also found reassurance in BTC’s market structure and the bullish signals on the daily chart, leading to increased confidence in the cryptocurrency’s future performance.