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Bitcoin (BTC) price surpasses $69,000 as shares fall
It was a positive divergence day for cryptocurrency bulls as stocks tumbled at the end of the US trading session while Bitcoin (BTC) managed to erase most of the week’s losses.
In late afternoon action, the S&P 500 and Nasdaq each fell nearly 1% — not a huge loss, but a reversal of about 2% from the previous session’s highs. Behind the lower moves were aggressive comments from Minneapolis Fed President Neel Kashkari.
“If we continue to see inflation move sideways, then I wonder if that is the case [need] make those rate cuts,” Kashkari said in a virtual event on LinkedIn. Kashkari has been among the most hawkish Fed members this cycle, so his remarks shouldn’t have been too unexpected, but stocks reacted quickly His comments also contrast with those made yesterday by Fed Chair Jerome Powell, who told an audience at Stanford that he continues to expect rate cuts at some point this year.
However, the rate outlook could be clearer took center stage on Friday with the release of government employment data for March. To date, those hoping that weakening jobs data might push the Fed to move more quickly into a rate-cutting cycle have been disappointed, with job growth remaining at robust levels through 2023 and so far in 2024.
Economists’ estimates speak of 200,000 jobs added in March, a high number, although down from 275,000 in February. The unemployment rate is expected to remain stable at 3.9%.
Bitcoin, which had fallen as low as $65,000 overnight, rallied for much of the US day, climbing above $69,000 at one point. At the time of writing, the cryptocurrency was trading at $68,750, up 4.5% in the past 24 hours. The widest CoinDesk 20 Index it was ahead by 3.25% in the same period, with ether (ETH) a notable slowdown, growing by only 1.75%.