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.
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.
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.
Bitcoin (BTC) started the new weekly session in red, dropping by over 6% to below $32,000, its worst level...
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.