Bitcoin, Ether prices surge up to 10% following US jobless claims data

New data revealed that applications for unemployment benefits dropped more than anticipated last week. However, this led markets to reduce the likelihood of an outsized half-point rate cut by the Federal Reserve in September, adjusting the chance from 69% to 54%.

Several Federal Reserve officials expressed growing confidence that inflation is cooling enough to permit future interest rate cuts, although recent market turbulence was not a factor in this view.

Crypto Tracker

At 1:01 pm IST, Bitcoin was trading 6.4% higher at $60,908, while Ethereum had risen 10.3% to $2,689. The broader crypto market also experienced gains, with BNB up 4.7%, Solana rising 2%, Dogecoin increasing by 5%, Avalanche by 5%, NEAR Protocol by 9%, and Shiba Inu by 5%.

“The upward movement in cryptocurrencies aligns with the bullish trend in the US market,” said the CoinDCX Research Team.

Meanwhile, Edul Patel, CEO of Mudrex, commented, “Bitcoin has reclaimed the $61,000 level, driven by whale accumulation following an earlier downward trend. This suggests strong bullish sentiment, with traders now targeting $62,700. The next significant resistance is at $65,000, while support levels are at $60,000 and $57,700.”Additional factors contributing to the positive market sentiment, according to Bitget Research, include:

• According to TASS, Russian President Vladimir Putin signed a law legalizing cryptocurrency mining in Russia. The law introduces new concepts, including digital currency mining, mining pools, mining infrastructure operators, address identifiers, and individuals organizing mining pool activities.

• Morgan Stanley, the largest wealth management firm in the U.S., authorized its 15,000 financial advisors to recommend Bitcoin exchange-traded funds (ETFs) starting August 7th, according to Cointelegraph.

Ryan Lee, Chief Analyst at Bitget Research, noted that while Bitcoin’s rise above $62,000 is significant, it does not necessarily indicate a full market recovery. The recent positive news developments have influenced market trends.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)