💪💪💪 Midday Market Analysis:
Last night, three major data points were released. The PCE was in line with expectations, so the impact wasn't particularly significant. However, the ADP employment data was quite different from expectations, with an anticipated 115,000 jobs, but the actual figure came in at 62,000. This indicates a significant drop in the non-farm private sector, suggesting a downturn in the U.S. economy.
As a result, U.S. stocks opened with a noticeable decline, and the cryptocurrency market was also affected, resulting in a waterfall-like drop. Bitcoin fell to around 92,800, while Ethereum dropped to around 1,730. However, after a night of recovery, this morning Bitcoin returned to around 95,000, with Ethereum at the 1,810 level.
Why was the rebound so swift and strong?
In fact, the ADP data being worse than expected is favorable for the Federal Reserve to start cutting interest rates in June. Once the rates are cut, it benefits the crypto market, which is also the reason why it could quickly rebound after the significant drop of 45,436,263,975.
A few days ago, it was mentioned that the 95,000 level had over two months of trapped positions, making it challenging to break through in the short term. It requires some time to consolidate before a breakthrough. Additionally, the probability of the Federal Reserve cutting rates has greatly increased, which has also accelerated Bitcoin's ability to break through resistance and surge towards the 100,000 mark.
Moving forward, the non-farm payroll data and April unemployment rate data on Friday should be closely monitored, as these are important factors influencing market direction.
Currently, A Yi suggests that everyone primarily focus on buying on dips, as the overall market shows signs of upward movement, and there are suitable positions for short-term trading.
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