Bitcoin (BTC) fell prior to the Feb. 3 Wall Street open as fresh United States economic data came in “hot hot hot.”
“Think again” over U.S. recession
The pair reacted negatively to U.S. unemployment data for January, which beat expectations so considerably that overall jobless figures fell to their lowest since 1969.
Non-farm payrolls (NFP) data likewise outperformed, while average hourly earnings conformed to forecast 0.3% growth.
“HUGE beat in NFP,” popular analytics account Tedtalksmacro responded on Twitter.
Returning to predictions from the day prior, Tedtalksmacro eyed a potential opportunity to increase Bitcoin exposure, given the latest come-down, which it said could take BTC/USD all the way to $20,000.
“An opportunity to reload on this news, potentially,” a further tweet added.
Bitcoin’s cold feet come from the implication that a stronger-than-forecast labor market allows the Federal Reserve to maintain tighter, less liquid monetary conditions for a longer period of time.
“US economy sliding into a recession? Well, think again. At least not in the near term,” economist and analyst Jan Wüstenfeld continued.
$25,000 Bitcoin now “crowded trade”
As Cointelegraph reported, the Fed raised interest rates by 0.25% this week, in line with almost all expectations, while Chair Jerome Powell caused excitement by using the term “disinflation” in accompanying comments.
BTC/USD thus spiked above $24,000 for the second time in as many days, with market participants still hopeful of a trip to $25,000 before a more significant retracement.
“BTC has had a clean breakout above its macro downtrend line + a backtest,” investment research resource Game of Trades stated.
“The next big resistance to clear is the $25k region.”
Popular trader Crypto Tony nonetheless acknowledged that that target may no longer materialize.
“$25,000 is my main target, but I am seeing now a lot of people asking for this, and is becoming a crowded trade,” he wrote in part of a fresh update on the day.
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