the bitcoin (BTC)The main cryptocurrency of the world, rises for the third consecutive day and scores remains above u$s28,000, while other cryptocurrencies falter.
Bitcoin rises 0.1% on the day, but accumulates a weekly loss of 0.5%. However, it remains above US$28,000, a threshold that did not seem close, especially after the collapse following the US banking crisis.
For his part, Ethereum loses 1.3% and trades near US$1,800 in his first fall of the week after accumulating a rise of more than 5% in the previous rounds.
However, cryptocurrencies are trading mostly low, led by Dogecoin, which is down 3.7% after posting its biggest gain since October last year on Monday and jumping more than 26%. The Dogecoin boost was given by the CEO of Tesla, Elon Musk, who changed the logo of the social network Twitter for the iconic Shiba Inu, mascot of the cryptocurrency. This week Musk was sued for more than $258 billion for driving the rise and subsequent fall of this digital asset, within the framework of what a Manhattan court considers a pyramid scheme.
They are followed in the fall by Cardano (-1.9%) and Polygon (-1.3%).
What does the market expect for cryptocurrencies?
The doubts caused by the proximity of the US employment report they have not been strangers to digital assets. The ADP March survey estimated that they were created 145,000 new jobs in the first economy of the world, a figure well below the 200,000 new payrolls expected by the consensus. In addition, US service sector expanded slightly in Marchbut the growth of employment and new orders slowed down more than estimated.
“It was a typical day for risk aversion in financial markets. US Treasuries rose, yields fell and stocks also fell. Weak data fueled expectations that the Federal Reserve (Fed) could end interest rate hikes soon”, explains Ipek Ozkardeskaya, a senior analyst at Swissquote Bank.
Thus, michael hewson, chief market analyst at CMC Markets UK, stresses the importance of the jobs report due out tomorrow. “It’s the next catalyst, although judging by recent data, the US job market still seems quite solid, ”he warns. Likewise, Hewson emphasizes that a bad employment data, added to a weak reading of the CPI next week, could push the Fed to raise interest rates by 25 basis points.
That’s how you think Loretta Mester, Cleveland Fed president, who believes the central bank should continue to squeeze markets and raise rates above 5%. “Precisely how much more the fed funds rate will have to rise from now on and how long policy will have to remain tight will depend on how much inflation and inflation expectations fall,” he explained. Currently, CME’s FedWatch tool gives a 54% chance that the Fed will keep rates at the current level (475-500 basis points) in his conclave on May 3.
Source: Ambito
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