Bitcoin Rebounds as Analysts Predict Range-Bound Trading
Bitcoin surged nearly 5% following a softer-than-expected U.S. jobs report, sparking hopes that the worst of the recent drawdown might be over. The former CEO of BitMEX, Arthur Hayes, suggested that Bitcoin could trade in a range between $60,000 and $70,000 over the next few months, signaling a potential bottoming out at this week’s lows of $56,000.
The dovish results of the recent Federal Reserve meeting also contributed to the positive sentiment for cryptocurrencies. Coinbase analysts noted that the Fed’s indication of no interest in cutting rates, along with tapering the pace of quantitative tightening, could mean the peak in the U.S. dollar’s upward momentum against both foreign currencies and cryptocurrencies.
Bitcoin’s correction since mid-March had coincided with concerns about the Fed adopting a more hawkish stance, leading to a surge in the U.S. dollar index. However, with the Fed’s dovish signals and the softer jobs data, market participants now see increased odds for at least one rate cut by September.
Ether reclaimed the $3,000 level and other altcoins like dogecoin, shiba inu, and Near Protocol’s NEAR also saw gains of 5%-10%. Market sentiment remains cautiously optimistic, with expectations of a gradual climb for Bitcoin instead of a swift recovery to the March highs. Hayes warned investors to expect range-bound price action between $60,000 and $70,000 until August.
