Bitcoin's Macro Sensitivity Tested Amid Key Economic Data Dumps
Bitcoin's sensitivity to US economic data has become increasingly evident this year. The market is approaching several important data dumps this week, and traders are keenly aware of their significance.
The top crypto's price action last week showed 'clear signs of heightened sensitivity to macro headlines,' particularly changes in expectations for US interest rates, according to a report from K33. Markets rallied on Thursday after Federal Reserve Governor Christopher Waller indicated he would favor keeping rates unchanged if incoming data confirmed that inflation was cooling.
The probability of a Fed rate hike was repriced from 63% to 50%, while both Bitcoin and equities moved higher. However, BTC subsequently gave back gains after payroll data came in above expectations, reinforcing expectations of a resilient labor market.