Financial markets displayed a remarkable upward trajectory recently, with significant developments underscoring the resilience of the U.S. economy. Data released by the U.S. Department of Labor revealed that initial jobless claims for the week ending September 21 totaled 218,000, marking the lowest level since May and falling below analyst expectations.
This figure is indicative of a robust labor market, which has been a critical factor in sustaining investor confidence. In addition, durable goods orders for August have shown stability, remaining flat contrary to forecasts which anticipated a decline. This upward momentum is reinforced by the second-quarter Gross Domestic Product (GDP) growth, which held steady at an impressive 3%.
Such economic indicators have greatly buoyed morale among investors, highlighting the foundational strength of the U.S. economy. In the cryptocurrency sphere, data from Bitpush shows a significant recovery of risk appetite among traders. With Bitcoin bulls making a notable ascent, the cryptocurrency managed to breach the $65,000 threshold, peaking at an impressive $65,887 in the afternoon before experiencing a minor retreat.
As of the latest updates, Bitcoin is trading at $65,235, which marks a 2.84% increase over the past 24 hours. The uptick was not limited to Bitcoin alone; most altcoins within the top 200 by market capitalization also enjoyed significant gains. Shiba Inu (SHIB) led the charge with a 21% increase, closely followed by Ethena (ENA) displaying a 17.5% rise, and Wormhole (W) climbing by 16.6%.
However, some altcoins faced adversities, with Hamster Combat (HMSTR) plunging by 31.3%, while Bittensor (TAO) and Baby Doge Coin (BabyDoge) fell by 6.1% and 5.1%, respectively. Presently, the total cryptocurrency market capitalization rests at $2.29 trillion, with Bitcoin dominating 56.3% of the market. As trading concluded for the day, major indices such as the S&P 500, Dow Jones, and Nasdaq witnessed gains of 0.40%, 0.62%, and 0.60%, respectively, reflecting the overall positive sentiment permeating the markets. In light of recent trends, TradingView analyst Arman Shaban opined that Bitcoin's ascent towards the anticipated $65,000 mark has established strong support at $52,750, and it remains unlikely to fall below $49,000 in the immediate term.
His analysis indicates that Bitcoin's short-term targets are currently positioned at $67,700 and $71,800, while the mid-term target is substantially higher at $80,000. Additionally, the core Personal Consumption Expenditures (PCE) price index is a key metric that directly influences decisions made by the Federal Reserve regarding monetary policy.
Scheduled for release soon, this report will provide critical insights. Shaban highlighted that if the core PCE data aligns with or dips below expectations (set at 0.2%), we may see reduced pressure on the market regarding interest rate hikes, subsequently favoring high-risk assets such as Bitcoin. Amidst a controlled inflation environment and more lenient monetary strategies, investors are likely to gravitate towards digital assets. Shaban also noted that should the core PCE data be consistent with anticipated figures, Bitcoin has the potential to maintain its upward trajectory, aiming for the previously mentioned short-term targets.
However, if the core PCE surpasses expectations, indicating inflation levels beyond what the market had foreseen, it's plausible that the Federal Reserve may adopt more aggressive monetary tightening strategies. In such a scenario, increased dollar strength could place short-term pressure on risk assets, including Bitcoin.
In this case, Bitcoin could experience fluctuations with critical support levels at $62,000 and $60,000. Nevertheless, owing to Bitcoin's solid fundamental demand coupled with technical analysis factors, any dips in price are expected to be short-lived, with a firm expectation for Bitcoin to return to an upward trend. In conclusion, the prevailing economic indicators suggest that it is most likely the core PCE will meet or fall below expectations, thus providing additional upward momentum for the burgeoning cryptocurrency market..