Bitcoin surged again and there are four possible reasons for the move upside as we can see more today in our bitcoin latest news.
Following what seems to be the biggest green daily candle in months, the past 24 hours were quite turbulent through the crypto market but this time everything is in favor of the bulls. Bitcoin surged again above $41,000 for the first time since January and the whole market is in the green. It is worth noting that BTC and the stock market were correlated for quite some and what happens on Wall Street has been impacting the crypto market for a while and it is critical to be aware of the other factors that influence the stocks.
The majority of the tech giants and other big names on the legacy markets are done filing the financial reports for the last quarter of the year and these are probably the important catalyst for the fluctuations on the markets. For example, a few days ago, the reports of Meta filing their reports revealing a loss of daily active users for the first time in history, and in response, the stock prices dropped by 26% following the filing. Now that the reports are through, it is safe to assume that the markets will be less volatile because of the avoidance of these massive catalysts of this kind and took away a chunk of the uncertainity.
The recent figures revealed that the US added about half a million jobs in January despite the spread of the latest COVID variant that tends to lead businesses short-staffed. The US Labor Department’s Bureau of Labor Statistics reported that the unemployment rate increased from 3.9% to 4% in the same time frame. The report surpassed the expectations of economists that predicted more than 150,000 new jobs and in addition, the length of time during which people remain unemployed also dropped:
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“In January, the number of persons jobless less than 5 weeks increased to 2.4 million and accounted for 37.0 percent of the total unemployed. The number of long-term unemployed (those jobless for 27 weeks or more) declined to 1.7 million.”
It is important to keep the bigger picture in mind with more jobs often tend to translate to lower inflation. Just for reference, the rice of BTC dipped a little after the report and exploded to a new high not seen since two weeks ago. More than 80% of the liquidations over the past day were short positions that launched a short squeeze with a market condition where the price is moving upwards and start a new wave of liquidations which in turn launch a further upward momentum.
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