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Crypto Experts Believe Bitcoin Surge Driven By Macroenvironment, Not Just By Spot ETF Approval Anticipation: Report

Published 06/11/2023, 23:48
Updated 07/11/2023, 01:10
© Reuters Crypto Experts Believe Bitcoin Surge Driven By Macroenvironment, Not Just By Spot ETF Approval Anticipation: Report
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Benzinga - Last week’s payroll data indicated the jobless rate rose to 3.9% while wage growth also saw a softer growth. Job creation slowed to 150,000 jobs in October after rising by 297,000 in September. These factors could possibly keep the Federal Reserve from hiking up interest rates (currently within the range of 5.25% to 5.5%) thereby leading to a positive development for risk assets, including cryptocurrencies.

Industry titans BlackRock, DTCC, OCC, State Street, Société Générale, Hedera, Citi, BMO, Northern Trust, Citibank, Amazon, S&P Global, Google, Invesco, and Moody’s will join Benzinga on Nov. 13 for Fintech Deal Day and Nov. 14 for Future of Digital Assets. Secure a spot here to join them.

What Happened: “There’s no reason not to be bullish BTC,” Amberdata's Greg Magadini said about Bitcoin (CRYPTO: BTC) in an email statement to CoinDesk.

Read Next: Bitcoin Enjoys Bullish Moment As Weekly Gains Of 11% Push Digital Asset Beyond $30K

“The Middle Eastern war (something beyond my understanding) seems to have taken a backseat in terms of market-driving news," Magadini said. "I expect a continuation of the relief rally for risk assets. Especially given the massive drop in VIX (19% down in last 5-days trading) and VVIX (11% down in past 5-day) week-over-week and the classic end-of-year rally narrative that traders look for in Q4.”

BTC Price Action: Since Nov.3, Bitcoin prices saw a 1.8% increase while the past month's trading has led to significant gains of 25%.

A Friday QCP Market report last week highlighted the latest Bitcoin rally was mainly driven by macroeconomic factors, rather than the spot Bitcoin ETF narrative.

“This is because a smaller than expected Treasury Q1 supply estimate yesterday and dovish FOMC sent bond yields tumbling and in turn risk assets soaring,” the report added.

Also Read: Here's Why Bitcoin's Bullish Momentum Is Far From Over: The Factors Driving King Crypto's Surge

CTF Capital, as reported by The Block, said Bitcoin prices have been holding the $35,000 mark since the jobs data was released, thereby holding back the Fed from raising interest rates.

A CME FedWatch tool showed traders now have a probability of 95% that the Fed will leave rates unchanged in December. This is compared to 80% before the release of payroll data.

Benzinga’s Future Of Digital Assets Event in New York is scheduled on Nov.14. Attend and learn more about Bitcoin estimates and the future of digital asset adoption. The gathering is seen as pivotal for the digital assets community. The event will spotlight the latest trends, innovations, and challenges in the digital asset realm.

Photo: Shutterstock

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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