Bitcoin (BTC) is currently consolidating in the mid-$34,000s as market participants analyze the impact of the weaker-than-expected US jobs report. The report caused a decline in US government bond yields and the US Dollar Index (DXY), while simultaneously boosting US stock prices.
Typically, when yields and the US dollar fall and stocks rise, crypto prices tend to benefit. However, Bitcoin is still trading approximately 1.0% lower on the day, likely due to profit-taking following its impressive rally from lows in October.
An expected approval of spot Bitcoin Exchange Traded Funds (ETFs) in the US has been a key driver behind this rally. Additionally, macro traders are increasingly betting that the Federal Reserve’s interest rate tightening cycle is coming to an end. Given these factors, it wouldn’t be surprising to see Bitcoin surge even higher.
