On Thursday, UTC, Bitcoin (BTC) ended with a nearly 12% gain, marking its biggest single-day jump since February 28, 2022, according to TradingView.
Risk Assets Stabilize as Recession Concerns Eased
The upbeat weekly U.S. jobs data contributed to the stabilization of risk assets, which had been volatile in recent weeks. The improved economic outlook eased concerns about a potential recession, leading to a surge in risk-on assets, including cryptocurrencies.
Key Levels to Watch: $61,800 and $54,000
According to market analysts, two key levels stand out as crucial points for the near-term price action: $61,800 and $54,000. Alex Kuptsikevich, senior market analyst at FxPro, highlights $61,800 as a pivotal level, noting that closing above this price could encourage buyers to push the price towards $67,000.
Bitcoin’s Price Recovery from Monday’s Rout
The cryptocurrency industry has witnessed a significant price recovery since Monday’s rout. On Thursday alone, BTC surged nearly 12% to $61,720, marking its biggest single-day UTC gain since February 28, 2022. The total crypto market capitalization rose 11% to $2.11 trillion, with the largest jump since November 10, 2022.
U.S. Jobless Claims Data and Its Impact on Risk Assets
The release of better-than-expected U.S. jobless claims data had a significant impact on risk assets. The improved economic outlook eased recession fears, leading to an increase in U.S. stocks and other risk-on assets. The VIX, Wall Street’s fear index, fell to 23, offering positive cues to risk assets.
Japanese Yen Weakness Contributes to Bitcoin’s Rally
The Bank of Japan’s decision not to raise interest rates has contributed to the Japanese yen’s weakness. This has had a positive impact on cryptocurrencies, including BTC, which has benefited from the increased investor confidence in risk-on assets.
Investor Interest in U.S.-Listed Crypto ETFs Surges
According to Farside Investors, U.S.-listed spot exchange-traded funds (ETFs) have attracted $194.6 million in investor funds, marking the highest tally since July 2022. BlackRock’s IBIT alone drew $157.6 million in investments.
Whales Accumulate Bitcoin During Monday’s Price Crash
Blockchain analytics firm Santiment notes that whales or wallets with large BTC holdings accumulated the cryptocurrency during Monday’s price crash. August 5th and 6th saw the highest level of Bitcoin whale transactions since the first week of April, according to Santiment.
Market Analysts’ Outlook: $61,800 and Beyond
Looking ahead, market analysts are optimistic about BTC’s prospects above $61,800. Alex Kuptsikevich highlights the significance of this level, noting that closing above it could encourage buyers to push the price towards $67,000.
Support Levels Remain Intact: $54,000 and Below
Investment advisor Two Prime notes that while prices hold support at $54,000, geopolitical issues and Fed policy remain key drivers of market sentiment. The bias remains bullish as long as these levels remain intact.
Conclusion
The recent price recovery in Bitcoin has been significant, with the cryptocurrency surging nearly 12% to $61,720 on Thursday alone. Risk assets have stabilized following the release of upbeat U.S. jobs data, easing recession concerns and contributing to an increase in investor confidence in risk-on assets. Market analysts highlight key levels of $61,800 and $54,000 as crucial points for near-term price action, with a bullish bias remaining intact as long as support levels remain intact.
