- Bitcoin price closed above $50,000 second time after the May crash.
- US jobs report dampens labor market growth expectations
- Senior Bloomberg analyst calls for BTC/USD hitting $100,000 with least resistance
JAIPUR (Coinchapter.com) – Bitcoin resumed its uptrend above $50,000 after US job growth stalled in August. The US economy added a mere 235,000 jobs last month compared to July’s stellar addition of 943,000 jobs.
Bullish traders assessed August’s weak nonfarm payrolls data to place long bets on the top cryptocurrency. As a result, the BTC/USD pair jumped nearly 6% from $48,322 to $51,096 in Friday’s intraday session, after a brief retraction from $50,405.
Related: 5 reasons why Bitcoin has rebounded from below $30K to $50K in a month
Weak Jobs Report May Push Back Taper Plans
Despite the overall employment rate ticking lower from 5.4% in July to 5.2% in August, American employment numbers fell far below expectations (read 733,000 positions). Economists, including US President Joe Biden, blamed it on the raging Delta variant outbreak.
The chief economist at Pantheon Macroeconomics, Ian Shepherdson, observed that US labor market recovery would remain dismal in Q4 2021.
August’s poor jobs report comes amid the Fed’s decision to begin tapering monthly asset purchases this year. But Fed Chair Jay Powell’s nod to taper came with a caveat at the recently held Jackson Hole symposium. While he acknowledged calls for winding down stimulus, Mr. Powell warned about moving prematurely as the US labor market still reels under the pandemic pressure.
Pulling back financial support too quickly would derail employment growth, he said. Friday’s jobs data implies that the Fed may be forced to hold back on its tapering move. Bullish traders and analysts assessed the same as a bullish indicator since a stalling of stimulus rollback would ensure the free flow of funds in the market.
Related: Bitcoin looks bullish as BTC tops $50,000 ahead of Fed’s Jackson Hole meeting.
” $BTC Nice break to the upside here
Not a lot of resistance up to mid $50ks”
said cryptocurrency trader and analyst Josh Rager
Something which provided the much-needed impetus for Bitcoin’s rally since March 2020.
BTC/USD Could Top $100,000 With No Resistance
In his latest analysis, Senior Bloomberg Commodity Strategist Mike McGlone revived his calls for Bitcoin hitting the psychological $100,000. Mr. McGlone asserted that the BTC/USD pair enjoys strong bullish sentiment after surviving a “gut-wrenching” correction.
“The crypto market may be just hype and speculation, or it could be a revolution in money and finance that’s in early price discovery days. Our bias is with the latter.”
said Mr. McGlone in support of his bullish bias
The Bloomberg analyst also added Gold to the list of assets bound to rally on the back of falling U.S. Treasury yields.
“We believe the mantra “There is no alternative” — or TINA — that’s been keeping the market afloat may be losing some luster to assets that are more likely to appreciate on the back of entrenched trends amid rising quantitative easing and debt-to-GDP levels.”
