Bitcoin rose 3.06% in the past 24 hours to trade at around $63,905 on Monday morning in Asia.
The cryptocurrency’s latest rally is on the back of positive U.S. job market data and anticipation for another interest rate cut in November, analysts said.
The price of bitcoin recovered over the weekend to near $64,000 following the release of U.S. positive jobs data last week, with analysts expecting continued optimism in the U.S. economy.
Bitcoin climbed 3.06% over the past 24 hours to change hands at $63,905 as of 10:30 a.m. on Monday Hong Kong time, according to The Block’s bitcoin price page. The world’s largest cryptocurrency’s price has remained subdued for most of this month so far, dipping near $60,000 last Thursday.
Bitcoin began rebounding around the time after the U.S. released its monthly jobs report on Friday, showing 254,000 jobs added in September, which exceeded the Dow Jones forecast of 150,000.
“There is increased optimism for a soft landing, suggesting that the U.S. economy is currently in a ‘Goldilocks’ state,” said Min Jung, analyst of Presto Research.
Rachel Lucas, crypto analyst of BTCMarkets, said increased liquidity was driven by improving market sentiment and growing anticipation of another U.S. Federal Reserve rate cut in November.
CME Group’s FedWatch Tool currently indicates a 97.9% chance of the Fed lowering rates again to a range between 4.50% and 4.75%. “[This] typically fosters a more risk-on attitude among investors, benefiting assets like Bitcoin,” Lucas said.
Lucas explained that another factor supporting the bitcoin rally was the reduction of Bitcoin held on centralized exchanges, which is often correlated with bullish price movements, as there was less selling pressure in the market.
“However, to sustain this recovery, Bitcoin would need to break and hold key resistance at $64,500. If it does, we could see a retest of $66,000,” Lucas added.
Both Lucas and Presto’s Jung said that geopolitical tensions in the Middle East present a significant risk to the sustainability of bitcoin’s recent rally.
“Although October has started slowly — despite historically being a strong month for bitcoin — analysts are optimistic that the recovery could gain pace as the month progresses,” Lucas said.