Bitcoin Nears $64K After Positive U.S. Jobs Data Boosts Optimism

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The Bitcoin price saw a notable recovery over the weekend, climbing to $63,500, following the release of stronger-than-expected U.S. jobs data for September. The world’s leading cryptocurrency, which had dipped to around $60,000 last Thursday, surged 2.5% in the past 24 hours. Analysts attribute this upward movement to renewed confidence in the U.S. economy and a potential “soft landing.”

The U.S. Department of Labor’s monthly jobs report, released on Friday, revealed that 254,000 jobs were added in September, far surpassing the Dow Jones forecast of 150,000. Min Jung, an analyst at Presto Research, noted that this result points to a “Goldilocks” economy—one that is neither too hot nor too cold—prompting increased optimism across financial markets, including cryptocurrencies.

Rate Cuts and Liquidity Drive Market Sentiment

Rachel Lucas, a crypto analyst at BTCMarkets, stated that the recent spike in bitcoin’s price was driven by improving market sentiment and the expectation of another rate cut by the U.S. Federal Reserve in November. According to CME Group’s FedWatch Tool, there is a 97.9% likelihood that the Fed will lower interest rates again, potentially to a range between 4.50% and 4.75%.

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Lucas explained, “Typically, when rate cuts occur, investors adopt a more risk-on approach, favoring assets like bitcoin.” This heightened market liquidity is often a catalyst for price rallies, especially for riskier assets like cryptocurrencies.

Another factor behind bitcoin’s recent strength is the reduction in the amount of bitcoin held on centralized exchanges, Lucas added. This trend indicates a decrease in selling pressure, which often leads to upward momentum in the market.

Challenges Remain Despite Optimism

Despite the promising price movement, both Jung and Lucas cautioned that geopolitical risks, particularly tensions in the Middle East, could hinder bitcoin’s recovery. “Although October has started slower than expected—despite its historical significance as a strong month for bitcoin—there is optimism that the price could gain momentum as the month continues,” said Lucas.

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To sustain the current rally, Lucas stressed the importance of bitcoin breaking through and holding the key resistance level of $64,500. If this happens, the next price target would be $66,000, as investor confidence builds further. However, the evolving geopolitical landscape remains a critical factor in determining the sustainability of the rally.