Bitcoin, Ethereum, and XRP rebound as the latest job reports, including ADP nonfarm employment change and jobless claims, signaled a weakening U.S. labor market. The data now shows 3 Fed rate cuts this year. Traders now wait for Nonfarm payrolls and unemployment rate jobs data due later today.
Bitcoin, Ethereum, XRP Shorts Get Liquidated
The crypto market saw $270 million in liquidations in the last 24 hours, with over $36 million in shorts liquidated in an hour. Over 94K were liquidated over the past 24 hours, with the largest single liquidation order of BTC-USDT worth $2.25 million on crypto exchange OKX.
Bitcoin, Ethereum, and XRP rebounded after recording nearly $20 million, $15 million, and $600K in the last 4 hours, as per Coinglass data. Notably, retail and institutional traders closed their short positions.
Analyst Skew revealed that BTC price rebounded from bid depth and purchased $100 million. BTC perpetuals trading data signaled clear rotation out of shorts and hedges in response to nonfarm payrolls data, with the majority expecting further progress towards Fed rate cuts.
Traders Now Expect 3 Fed Rate Cuts
The CME FedWatch Tool now shows more than 99% probability of a 25 bps Fed rate cut on September 17. In addition, traders expect the Federal Reserve to make a total of 75 bps rate cuts this year. As per the data, a 25 bps rate cut in December jumped more than 47%.
The happened after recent jobs reports, including the US JOLTS Job Openings, ADP Employment Change, and jobless claims, locked the Fed rate cut resuming in September.
The global stocks and crypto markets await the key August Nonfarm payrolls data release and unemployment rate data on Friday. Nonfarm payrolls data is expected to come in at 75K, higher than 73K previously. Moreover, economists forecast the unemployment rate rising to 4.3%, up from 4.2% previously.
Bitcoin, Ethereum, and XRP prices could recover if nonfarm payrolls data comes in lower-than-expected, triggering a broader crypto market recovery. Bitcoin price was trading 2% higher at $112,800. The 24-hour low and high are $109,347 and $112,995, respectively.
Furthermore, the trading volume has increased by 16% in the last 24 hours, indicating a rise in interest among traders after $4.5 billion in crypto options expired on the largest crypto exchange Deribit.
Ethereum price surpasses $4,400, up more than 1% from the 24-hour low of $4,268. The 24-hour trading volume remains 10% lower amid selloffs by whales.
In contrast, XRP bounced more than 2% in the last few hours, with the price currently trading at $2.84. The 24-hour low and high were $2.78 and $2.85, respectively.
Varinder Singh
Varinder is a seasoned leader in the fintech and crypto media with over 12 years of experience, including over 6 years dedicated to blockchain, crypto, and Web3 developments. He is known for covering high-impact and quality news stories for publishers such as CoinGape, The Coin Republic, and The Crypto Times, while perfecting and training multiple journalists during his tenure. Being a Master of Technology degree holder, analytics thinker, and tech enthusiast, he has shared his knowledge of disruptive technologies in over 5000 news articles and papers.
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Source: https://coingape.com/bitcoin-ethereum-xrp-rebound-as-markets-pricing-in-3-fed-rate-cuts/