Bitcoin defends $30K as ‘risk-off’ mood grips markets

Economic indicators have nudged the yields on US Treasuries higher as investors factor in the likelihood of further monetary policy tightening by the Federal Reserve

article-image

Michael Gordon/Shutterstock, modified by Blockworks

share

Bitcoin (BTC) stemmed further losses below a key level of support following whipsaw trading on Thursday, with prices rising and falling in quick succession.

The asset dipped below $30,000 for the first time this month after the previous day’s trading activity pushed prices as high as $31,500, Blockworks Research data shows.

Prices for the world’s largest crypto have since regained ground, after dipping to a low of $29,720 in early trading hours. The asset is still posting 80% returns since the year began.

Source: Blockworks Research

According to Toby Chapple, head of trading from Australian trading firm Zerocap, the wider markets globally have begun to price in a “risk-off” mood.

Economic indicators have nudged the yields on US Treasuries higher as investors factor in the likelihood of further monetary policy tightening by the Federal Reserve. Positive labor data prints are being used by market participants to forward predict future events, the trading head added.

“This is not a crypto move,” Chapple said. “It’s a macro move following US data prints for payrolls.” The data is often seen as a reliable metric for the forthcoming Non-Farm Payrolls numbers — expected Friday, Chapple said.

The ISM Purchasing Managers’ Index, which provides insights into the US’s manufacturing sector, demonstrated a higher-than-anticipated uptick of 53.9 versus 51.3 expected, lending credence to the narrative of an energized US economy.

Rates on various maturities across the Treasury yield curve, including the 2-year, 5-year, and 10-year notes, edged higher on Thursday, according to data from the Treasury Department.

Risk-on equities benchmarks, as seen in the Dow Jones Industrial Average (DJI), Nasdaq Composite, and S&P 500 (SPX) all dipped lower on Thursday, down between 0.75% and 1%.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Unlocked by Template.png

Research

With the spot ETH ETF approval, the institutions are coming. stETH - given its dominance in marketshare, existing liquid market structures, and highly desirable properties - is poised for institutions.

article-image

Launching cryptocurrencies the old fashioned way may soon make a return

article-image

Kraken and CertiK brought their beef to social media after Kraken said researchers exploited $3 million through a bug

article-image

NVIDIA’s historic run is only deepening the divide between mega-cap tech stocks and the rest of the market.

article-image

EIP-7702 was quickly adopted for the next Ethereum upgrade, but developers haven’t quite locked it down