“Think again” over U.S. recession
Data from Cointelegraph Markets Pro and TradingView tracked Bitcoin/USD as it erased earlier-in-the-day gains to focus on $23,000 support. The pair reacted negatively to January unemployment data in the United States, which exceeded expectations so dramatically that overall jobless figures fell to their lowest level since 1969.
Non-farm payrolls (NFP) data also outperformed expectations, while average hourly earnings increased by 0.3%. “HUGE beat in NFP,” tweeted the popular analytics account Tedtalksmacro.
Returning to predictions from the day before, Tedtalksmacro saw the latest drop as an opportunity to increase Bitcoin exposure, predicting that BTC/USD could reach $20,000.
“Perhaps an opportunity to reload on this news,” a subsequent tweet added.
Bitcoin’s trepidation stems from the implication that a stronger-than-expected labor market allows the Federal Reserve to keep tighter, less liquid monetary conditions in place for a longer period.
“US economy sliding into a recession? Consider again. At least not in the immediate future,” economist and analyst Jan Wüstenfeld added.
Bitcoin is now a “crowded trade” at USD 25,000.
As previously reported by Cointelegraph, the Fed raised interest rates by 0.25% this week, in line with almost all expectations, while Chair Jerome Powell sparked controversy by using the term “disinflation” in accompanying remarks.
Related: Bitcoin bulls must reclaim these two levels as the dreaded ‘death cross’ looms.
Thus, BTC/USD surpassed $24,000 for the second time in two days, with market participants still anticipating a trip to $25,000 before a more significant retracement.
“BTC has had a clean breakout above its macro downtrend line + a backtest,” according to the investment research site Game of Trades.
Nonetheless, popular trader Crypto Tony admitted that the target may no longer be met.
“$25,000 is my main target, but I am seeing a lot of people asking for this now, and it is becoming a crowded trade,” he wrote in a new update for the day.