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.
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%.
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Source: https://blockworks.co/news/bitcoin-defends-30k-markets