On Friday, November 3, the US labor market released the October jobs data, indicating noticeable signs of cooling down. This news was well-received on Wall Street as it suggests a potentially less aggressive stance by the Federal Reserve regarding its monetary tightening policy in the future
The cooling down of the bond yields and the labor market didn’t have much impact on the Bitcoin price. Over the last 24 hours, the BTC price has shown negligible movement of 0.17% trading at $34,726 with a market cap of $677 billion.
Positive Macro Developments for Bitcoin
As reported, the recent movements in the BTC price have been largely due to the macro shifts taking place in the global economy. On Friday, the S&P 500 surged approximately 1%, marking its most impressive performance in 2023. Over the last week, the S&P 500 has surged by 4% showing impressive gains and market confidence.
As on-chain data provider Santiment reported, the S&P 500 enjoyed a significant week as Bitcoin and Ethereum’s momentum subsided. As different sectors take the spotlight, the upcoming week will reveal if the crypto market remains correlated with equities or if assets are poised for a bull run. It is likely that the Bitcoin price will also catch up with the S&P gains, with some analysts already predicting a massive $200K price target.
The market’s “fear gauge,” the VIX, experienced its most significant five-day decline in 21 months. Treasury yields rose across the board, with two-year yields falling by 16 basis points to 4.83%. The dollar’s value saw its most substantial drop since July, while oil prices dipped below the $81 per barrel threshold.
According to Fed swaps, traders are currently assigning a mere 16 percent probability of another interest rate hike by January. Moreover, they have completely factored in a rate cut by June, shifting it forward from the earlier expectation of July.
Altcoins Pose Strong Rally
While Bitcoin remains steady, altcoins have taken the lead with the falling bond yields. Ethereum (ETH) is up 2% regaining the $1,800 level. On the other hand, top performers like Solana (SOL), Cardano (ADA), and Chainlink (LINK) have gained between 3-5%.
