Bitcoin price slips 3%, ignores US jobs beat as XRP sees all-time high
From cointelegraph by William Suberg
Bitcoin fell further beneath $100,000 after the Jan. 16 Wall Street open as markets shook off a US unemployment overshoot.
BTC/USD 1-hour chart. Source: Cointelegraph/TradingView
BTC price wobbles as altcoins take the lead
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD targeting $97,000, down nearly 3% after the week’s initial jobless claims.
These came in above median estimates at 217,000 versus 210,000, respectively, suggesting that labor market health was slightly weaker than expected.
The increase was not a major one, however, and stocks remained stable at the US open after marked gains the day prior.
“Global markets rallied last night after a weaker-than-expected CPI report eased fears of rising inflation. BTC jumped 4.13% to a high of $100.8K before stabilising just below the $100K milestone,” trading firm QCP Capital summarized in a post to Telegram channel subscribers.
“The same level of optimism was also seen in equities as SP 500 rose 1.83% and Nasdaq gained 2.27%.”
US spot
Bitcoin ETF netflows (screenshot). Source: Farside Investors
QCP noted what it called “staggering” capital inflows to the US spot Bitcoin exchange-traded funds, or ETFs, which totaled $755 million for Jan. 15.
“The swift recovery in inflows reflects strong institutional demand and suggests an exciting outlook for crypto,” it continued.
XRP/USD 1-month chart. Source: Cointelegraph/TradingView
While Bitcoin returned to the $100,000 mark for the first time in over a week, however, It was altcoins that stole the show, led by new all-time highs for XRP
XRP$3.28on Bitstamp.
SOL$207.46also produced standout 8% daily gains to close in on price discovery.
Both were fueled by mainstream media reports that the incoming Donald Trump administration would seek to create a broader crypto reserve giving preferential treatment to altcoins founded in the US.
“With BTC dominance plummeting from 58.6% to 57.4%, altcoins are expected to outperform as profits rotate into ETH and other altcoins,” QCP concluded.
“For confirmation of altcoin season, BTC dominance will need to break below the support at 57.3% while hovering around the 100K milestone.”
Bitcoin crypto market cap dominance 1-day chart. Source: Cointelegraph/TradingView
No relief for Fed rate cut expectations
In a note of caution for crypto and risk-assets going forward, market expectations of a return to financial easing by the Federal Reserve remained almost nonexistent after the jobs data.
Related: Bitcoin risks weeks of sideways moves amid $102K 'rejection' warning
The latest estimates from CME Group’s FedWatch Tool maintained a mere 2.7% chance that the Fed’s upcoming meeting would yield a further interest rate cut.
Fed target rate probabilities. Source: CME Group
“Many consumers say they believe we are in a recession. Meanwhile, the stock market is less than 5% away from an all time high,” trading resource The Kobeissi Letter wrote in part of X analysis the day prior.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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