Bitcoin (BTC) showed little interest in moving higher at the Wall Street open on April 7 as fresh US macro data fueled bets on further interest rate hikes.
Analyst: Fed will keep raising ‘until something snaps’
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it hovered around $27,900 on Bitstamp.
US non-farm payrolls, the main focus of macro data for the week, came in slightly below expectations, indicating that unemployment is rising more slowly than expected.
This, in turn, raised market expectations that the Federal Reserve would persist in raising interest rates to combat inflation, at the expense of the return on risky assets and cryptocurrencies.
The odds of another 25 basis point rate hike in May topped 70% on the day, according to CME Group. FedWatch Tool50% having previously circulated.
“Another strong jobs report. Probably fuels speculation of a 25bp rise in May…”, analytics resource Tedtalksmacro reacted On twitter.
Caleb Franzen, Senior Market Analyst at Cubic Analytics, concluded that this and other recent employment data showed that there were “no major holes in the labor market data (yet).”
“They’re going to keep going until something breaks,” he said. continued on Fed policy in part of Twitter tracking analysis.
“So far, the banks are cooling off and the intervention has worked. Depositors are not worried. The job market is still too resilient and inflation is too high, although it is slowing. Disinflation is underway, but the Federal Reserve is bound by her own handcuffs.” .”
Related: Crypto winter may affect mental health of hodlers
Just before the report, monitoring of material resource indicators uploaded Binance order book data, which showed liquidity strengthening closer to the spot price.
This, as Cointelegraph reported the day before, was apt to further “damp” volatility.
Dollar bounces with shares
Elsewhere, US stocks were trading higher on the day, with the S&P 500 and Nasdaq Composite Index gaining 0.4% and 0.8%, respectively, at the open.
Related: Bitcoin ‘Faces Headwinds’ As US Money Supply Falls Further Since 1950s
Meanwhile, the US dollar pulled off an uncharacteristic copycat bounce, pulling back above the 102 mark to hit its highest levels in multiple days.
“$USD Strength Still Shows New High After NFP Report,” Analyst James Stanley wrote in part from a Twitter response.
“$DXY reacts strongly to data that is not necessarily that strong.”
The views, thoughts and opinions expressed here are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.