Yerevan (CoinChapter.com) — Bitcoin went choppy on the first day of its new weekly session, falling sharply after it attempted to break above $60,000 during the Asia-Pacific session.
The selling pressure was not the same during the weekend. There, the bitcoin market was running higher on the heels of a terrible non-farm payroll report in the US. Released Friday, the data missed expectations by huge margins, recording only 266K jobs in April against the projections of one million.
Read More: Warren Buffett Avoids Bitcoin Despite Worrying About “Substantial Inflation”
Bitcoin does not care much about what happens in the macroeconomic sector. The cryptocurrency runs higher and lower due to excessive speculations. But the arrival of the coronavirus pandemic has changed that perception a bit. Ever since the Federal Reserve has pressed its foot on its quantitative easing peddle, the bitcoin price has been rising, insofar that it was trading just shy of 1,900 percent high in mid-April 2021, a year after crashing to $3,858.
A weaker job report highlight the need for the Fed to keep its expansionary policies in place. It would mean that the central bank would keep buying government bonds and mortgage-backed securities at the rate of $120 billion per month. Meanwhile, it would also maintain its interest rates near zero.
Bitcoin rose 10 percent over the weekend in response to the NFP shock. The cryptocurrency reached a sessional high of $59,559 before turning lower into the new weekly session. What went wrong?
Altcoin vs. Bitcoin Trend
Bitcoin was less losing and more holding key supports as traders’ focus remained glued to potential opportunities in the altcoin market. It looks obvious. Traders want to make strong intraday profits out of altcoins’ super-wild price moves.
Read More: Litecoin Hits All-Time High Amid Crypto Market Boom — Crash Ahead?
They believe they could double their money in a week if the tokens like Dogecoin rise more than 19,000 percent in 2021. Then, rotational trading is assisting other tokens, including Bitcoin Cash, Ethereum, and Litecoin, achieving record highs. As a result, Bitcoin’s long-term opportunities appear less appealing to traders, focusing on short-term gains.
This week tends to be the same. Bitcoin’s run-up above $60,000 would face an uphill battle against the booming altcoin interest, even though macroeconomic indicators are screaming for an extended bull run for the flagship cryptocurrency.
Key Events
Bitcoin traders should be focusing on the key inflation numbers releasing this Wednesday and Thursday in the form of Consumer Price Index (CPI) and Producer Price Index (PPI). Meanwhile, seven Fed speakers will take the podium this week to shed more light on how they look at inflation and jobs.
A higher CPI could reiterate investors’ fears of inflation. That would mean more capital outflow to safe-haven markets, from which Bitcoin could benefit.
Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including CoinChapter, NewsBTC, FxDailyReport, Bitcoinist, and CCN. Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.
No time to read? Crypto articles too technical? Only want the facts?
