Bitcoin surged to new multimonth highs following the release of better-than-expected US nonfarm payrolls data on May 2. The positive data indicated that 177,000 jobs were added in April, surpassing the forecast of around 140,000. This news boosted investor confidence in the US labor market, leading to a rally in Bitcoin and stock prices.

Despite concerns that a strong labor market could lead to tighter financial conditions, including raised interest rates, the S&P 500 and Nasdaq Composite Index both saw gains of over 1.3% on the day of the report. US President Donald Trump also reiterated his calls for the Federal Reserve to lower interest rates, citing no signs of inflation and consumer expectations for lower prices.

The upcoming Federal Reserve meeting on May 7 is not expected to result in any changes to the current interest rate regime. The odds of a rate cut next week are currently low, with the FedWatch Tool from CME Group putting the probability at just 2%.

In the world of Bitcoin trading, market participants are closely monitoring the price action and potential liquidity grabs. As Bitcoin approached the $97,000 mark, traders warned of a possible pullback or manipulation to take liquidity before a reversal. Popular traders like Skew and Daan Crypto Trades cautioned about the importance of monitoring order book liquidity and spot flow to determine the direction of the trend.

Trader and analyst Rekt Capital set an end-of-week price target for Bitcoin at $99,000, emphasizing the significance of Bitcoin holding above $93,500 to maintain a bullish momentum. The key resistance level to watch for is around $99,000, which, if broken, could pave the way for further upside potential in the Bitcoin price.

Overall, the positive US economic data, combined with President Trump's calls for lower interest rates, have created a mixed sentiment in the markets. While a strong labor market is generally seen as positive, concerns about potential tightening of financial conditions linger. In the world of Bitcoin trading, the focus remains on price action, liquidity, and key resistance levels in determining the next move for the cryptocurrency.

As with any investment, trading Bitcoin carries risks, and investors are advised to conduct their own research and analysis before making any decisions. This article serves as a general overview of recent market trends and does not provide specific investment advice.

Source: https://cointelegraph.com/news/bitcoin-hits-10-week-high-trump-demands-rate-cut-on-us-jobs-beat?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound