Bitcoin Price and Ethereum Prediction: BTC Remains Below $28,250 Amid Strong US Nonfarm Payroll Report
Bitcoin (BTC), the world's largest cryptocurrency, failed to prolong its upward rally and dropped below $28,000 on Friday. Bitcoin had been on a positive trend, reaching a high of $29,000 earlier in the week. Although, it was short-term gains as it dropped below $28,000 today, signaling a bearish sentiment in the market.
However, Bitcoin continues to struggle to break through the $28,250 resistance level, while Ethereum is showing signs of consolidation.
The reason for its upward rally could be attributed to the bullish US dollar, which rose lately after the release of strong US job growth data, increasing the probability of a potential interest rate hike by the Federal Reserve in May.
This news will likely cause investors to shift away from cryptocurrencies like Bitcoin, which may lose value due to a stronger dollar.
Besides, if the interest rate hike does occur, it may lead to increased borrowing costs and reduced economic growth, which could further impact the value of Bitcoin and other cryptocurrencies.
The US economy is performing well, with low unemployment rates and increasing wages. As a result, the Federal Reserve is likely to raise interest rates next month, which could negatively impact the price of Bitcoin.
Higher interest rates can make borrowing money to invest in Bitcoin more difficult and expensive, leading to decreased demand for Bitcoin and a potential decrease in its price.
However, the latest US job report has shown historically low unemployment rates, rising wages, and consistent job growth. In March, the US economy added 236,000 jobs, with an average gain of 345,000 jobs per month in the first quarter. This figure is significantly higher than the central bank's target to maintain its 2% inflation goal.
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