On November 3, the US labor market released its October jobs data, signaling a slowdown. This development was positively received on Wall Street, hinting at a potentially less aggressive stance by the Federal Reserve regarding future monetary tightening policies.
Interestingly, Bitcoin showed limited response to the cooling bond yields and labor market. Over the past 24 hours, BTC’s price barely moved, registering a meager 0.17% change and trading at $34,726, with a market cap of $677 billion.
Positive Macroeconomic Trends for Bitcoin
The recent movements in Bitcoin‘s price are primarily attributed to global macroeconomic shifts. The S&P 500’s remarkable 1% surge on Friday marked its most impressive performance in 2023, with a 4% gain over the past week. Santiment, an on-chain data provider, noted that Bitcoin and Ethereum’s momentum has eased. The coming week will reveal whether the crypto market remains correlated with equities or if it embarks on a bullish run. Some analysts are already forecasting a substantial $200,000 price target for Bitcoin.
The “fear gauge” of the market, the VIX, experienced its most significant five-day decline in 21 months. Treasury yields saw a widespread increase, with two-year yields dropping by 16 basis points to 4.83%. The US dollar saw its most substantial drop since July, and oil prices slipped below $81 per barrel.
Fed’s Monetary Policy Expectations
According to Fed swaps, traders presently assign a mere 16% probability of another interest rate hike by January. Moreover, they have fully factored in a rate cut by June, moving it up from the previous expectation of July.
While Bitcoin maintains stability, altcoins are leading the charge amidst the falling bond yields. Ethereum (ETH) has climbed 2% and reclaimed the $1,800 level. Top performers like Solana (SOL), Cardano (ADA), and Chainlink (LINK) have all gained between 3% and 5%.
In this evolving crypto landscape, altcoins are stepping into the limelight as Bitcoin takes a back seat amid shifts in the global economic landscape.