May 6 2024: Bitcoin’s price surged past the $65,000 mark on Monday, marking a continued uptrend that lifted the world’s largest cryptocurrency out of bear market territory over the weekend.
As of writing, Bitcoin was trading at $65,393, showing a 2.7% increase over the past 24 hours.
In line with Bitcoin’s rally, stocks related to the crypto market also saw significant gains during Monday’s premarket trading. MicroStrategy (MSTR) and Marathon Digital (MARA) led the way with increases of +8.7% and +7.7%, respectively.
Other notable gainers included CleanSpark (CLSK) with a 5.6% jump, Riot Platforms (RIOT) climbing by 4.5%, and Coinbase (COIN) adding 3.6%.
Bitcoin’s resurgence was primarily fueled by weaker-than-expected nonfarm payroll data, which put downward pressure on the US dollar while increasing the attractiveness of risk assets such as cryptocurrencies.
Market sentiment is now leaning towards a higher probability of a 25-basis-point rate cut by the Federal Reserve in September. This scenario is favorable for cryptocurrencies as they typically perform well in a low-interest and high-liquidity environment.
While the cooling labor market provides momentum for potential Fed rate cuts, it’s worth noting that the recent payroll data follows a string of five months of stronger-than-expected readings. Moreover, inflation remains above the central bank’s 2% annual target, maintaining some pressure on the Fed’s decision-making regarding interest rates.