Yesterday, the US stock market ended its three-day decline, with the technology-heavy Nasdaq rising 1.35%, the S&P 500 rising 0.88%, and the Dow Jones rising 0.54%. The latest employment data showed a continued tight labor market, and Federal Reserve officials have also begun to downplay market expectations of a rate cut in March. Bitcoin, on the other hand, has been declining since the launch of the ETF, falling to 41,000, a decrease of 15%.
The US Department of Labor announced on Thursday that initial jobless claims decreased by 16,000, adjusted for seasonal factors, to 187,000, reaching the lowest level since September 2022. Retail sales data released on Wednesday also exceeded market expectations.
This week, Federal Reserve officials, including Christopher Waller, have pushed back against market expectations of a rate cut, suggesting that the pace and timing of rate cuts will be slower than expected by the market.
According to the CME FedWatch Index, market expectations for a one-point rate cut by the Federal Reserve in March have dropped to 54.6%, lower than the previous 70%.
The latest on-chain data from CryptoQuant indicates a significant increase in selling activity by Bitcoin miners. In the past 24 hours, miners have sold nearly 10,600 BTC, equivalent to about $455.8 million. In addition, the Bitcoin network’s hash rate has dropped by 34% since last Friday, from a peak of 629 EH/s to a low of 414 EH/s, due to restrictions on corporate electricity consumption in Texas caused by cold weather.
Bitcoin has been declining since the launch of the ETF, falling by 15% from $48,969.
Matrixport analyst Markus Thielen, who previously caused controversy due to his rapid shift in sentiment, has once again released a report, suggesting a short-term bearish outlook for Bitcoin to $38,000 and a bullish outlook for Ethereum to $3,000.
Based on technical analysis, $38,000 is indeed the next support level for Bitcoin.
( Matrixport Analyst: Short-Term Bearish on BTC; Bullish on ETH at $3,000 )
ETH
Bitcoin
US stocks
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Further reading:
Inflation Slows, Strong Performance of US Stocks, BTC and ETH Consolidate, SOL and DOT Continue to Rise
US stocks continue to rise, Bitcoin and Ethereum continue to rise after breaking through the moving average.