Shifting rate expectations have played havoc on bitcoin (BTC) in recent trading sessions.
After plummeting to two-month lows at the tail end of last week, the world’s largest cryptocurrency flew no less than 6.4% higher on Friday, setting the stage for a strong weekend session.
The BTC/USD pair proceeded to fall 1.3% on Monday before a bullish engulfing candlestick pattern erased these losses this morning.
Investors appear encouraged by data released on Friday showing job growth that found the right balance of being strong enough to indicate a healthy economy, but not too strong to spark fears of further interest rate pains.
Bets are now on a September rate cut by the Federal Reserve, with some analysts predicting at least two cuts by year-end.
Exchange-traded fund inflows are also supporting bitcoin’s spot price, with Farside data showing nearly $600 million worth of inflows over the previous two trading sessions.
Bitcoin remains 51% higher year to date – Source: tradingview.com
Ethereum, the second-largest cryptocurrency, stayed bullish over the weekend before experiencing a similar dip and recovery to bitcoin to kick the current week off.
Week on week, bitcoin is up 3.5% compared to ether’s flat 1%.
In the broader altcoin space, Solana (SOL) and Dogecoin (DOGE) have rocketed up more than 15% each while Ripple (XRP) is up in the high single digits.
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