Bitcoin Price Surge Driven by Softer Employment Figures and Renewed Investment Demand
Analyst Matt Mena from 21shares believes that Bitcoin's recent price surge is driven by softer employment figures and renewed investment demand. This shift in economic expectations has reduced the Federal Reserve's odds of further monetary tightening, a development that is favorable for cryptocurrencies heading into the final quarter.
The strategist estimates that approximately $7 billion in quarterly fund additions have supported the recovery. This includes $2.6 billion for ether and $500 million for solana. Mena views reduced expectations for further tightening as a positive factor for cryptocurrencies.
The analyst identified $87,000 as a barrier to further gains, and sees the current level of resistance as a key hurdle for Bitcoin. He believes that softer hiring data could be the catalyst to clear this resistance and set the path to the next resistance levels: $90K and $97K.