The initial rally in BTC had come after a string of macroeconomic data that had raised hopes for interest rate cuts this year, however, the non-farm payrolls which climbed by 272K in May outpacing the 182K expected, could dent some expectations.
“Bitcoin has surged back over $71,000, driven by substantial inflows into Bitcoin ETFs and rate cuts by major central banks, including the ECB and the Bank of Canada, for the first time in years,” said Cory Klippsten, CEO of Swan, a Bitcoin financial services firm.
“Although the Federal Reserve has only cut once during the May-November period ahead of the U.S. Presidential elections in the last 30 years, risk assets primarily depend on the odds the market associates with rate cuts—not necessarily the actual cuts. This keeps us bullish on risk assets in general, and we expect new all-time highs for Bitcoin,” 10x Research added.
“With the anticipation of a possible Federal Reserve cut in September this year and market conditions easing, investors are beginning to increase their crypto exposure in their portfolio, as seen by new inflows to Bitcoin ETF in the U.S.,” Lucy Hu, senior analyst, Metalpha, said.
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