May 9, 2024 10:12 PM | 2 minute read |
Major cryptocurrencies soared late on Thursday as the latest unemployment claims data raised expectations for interest rate cuts among risk-on investors.
| cryptocurrency | Gain +/- | Prices (recorded at 8:45 p.m. EDT) |
| Bitcoin (Cryptocurrency: BTC) | +2.43% | $62,817 |
| Ethereum (Crypto: ETH) | +1.39% | $3,025.76 |
| dogecoin (Code:Doge) | +4.60% | $0.151 |
what happened: Market leader Bitcoin rallied above $62,000, reversing a three-day correction that saw it drop to $60,000.
The rally has fueled speculative interest in Bitcoin, with open interest on the Chicago Mercantile Exchange, Bitcoin's largest derivatives exchange, rising 1.83% in the past 24 hours.
However, derivatives traders have chosen to bet against the market, with the number of traders taking bearish short positions against the apex cryptocurrency over the past 24 hours significantly outnumbering those betting on the price to rise.
Dogecoin, the largest meme coin by market capitalization, rose 4.6% in the past 24 hours.
Top Gainers (24 hours)
| cryptocurrency | Gain +/- | Prices (recorded at 8:45 p.m. EDT) |
| akash network (AKT) | +29.32% | $5.89 |
| graph (GRT) | +12.87% | $0.297 |
| tall chain (Rune) | +10.70% | $6.33 |
The global cryptocurrency market capitalization was $2.32 trillion at the time of the last survey, rising 2% in 24 hours.
Stock markets rose during the day after higher-than-expected U.S. jobless claims. The Dow Jones Industrial Average rose for the seventh day in a row, closing 0.85% higher at 39,387.76 points. The S&P 500 rose 0.51% to end at 5,214.08, and the tech-heavy Nasdaq Composite Index rose 0.27% to end at 16,346.26.
New data showed 231,000 new jobless claims were filed in the week ending May 4, exceeding market expectations and the highest level since late August 2023.
look more: best cryptocurrency scanner
Analyst notes: Recto CapitalThe prominent crypto analyst and trader said that Bitcoin's current decline is the most severe at 23.6%, outpacing the 22.9% retrace from early 2023.
The analyst also noted that this was one of the longest declines of the cycle, with the correction phase lasting nearly 50 days.
On-chain analytics firm Santiment observed that market sentiment towards major coins remains negative.
The firm added that the atmosphere has changed dramatically since Bitcoin's recent halving, but before that an overt atmosphere of “greed” dominated the market.
But just as the ultra-bullishness paved the way for a correction back then, the current fear, uncertainty, and doubt (FUD) could eventually lead to a pullback.
Read next: Donald Trump says crypto advocates should 'vote for him': But is he always saying 'that's OK'?
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