Bitcoin (BTC) experienced a 2% rebound on April 4 following positive signals from the United States Federal Reserve. The Federal Reserve indicated that a rate cut could be expected at some point this year, which contributed to a broader rally in risk assets. The price of BTC reached a high of $6,751 on Bitstamp during the Wall Street open. In addition to Bitcoin, U.S. stock indices also saw gains, while gold cooled after reaching new all-time highs above $2,300. Federal Reserve Chair Jerome Powell’s recent speech hinted at interest rate cuts before the end of 2024, which would benefit risk assets. The next Federal Open Market Committee (FOMC) meeting is scheduled for May. However, the latest data from CME Group’s FedWatch Tool suggests that the probability of a 0.25% rate cut at the May or June meeting is only 61% at best. Despite this, the market received an additional boost from slightly higher-than-expected initial U.S. jobless claims. Bitcoin’s market structure also provided confidence, as the 200-period exponential moving average (EMA) on 4-hour timeframes acted as support. Furthermore, the relative strength index (RSI) on the daily chart crossed back above the key 50 point, indicating a potential continuation of upside momentum. It is important to note that this article does not provide investment advice, and readers should conduct their own research before making any investment decisions.
US jobless claims coincide with 2% increase in Bitcoin price, reaching $67.5K