Bitcoin surged past the $65,000 mark on Monday, extending its recent upward trend and marking a significant milestone as the leading cryptocurrency emerged from bear market territory over the weekend.
At the time of reporting, Bitcoin was trading at $65,393, reflecting a 2.7% increase over the past 24 hours.
This resurgence in Bitcoin’s price was accompanied by a notable uptick in crypto-related stocks during Monday’s premarket trading session. MicroStrategy (MSTR) and Marathon Digital (NASDAQ:MARA) led the gains, with increases of 8.7% and 7.7%, respectively. Additionally, CleanSpark (NASDAQ:CLSK) saw a 5.6% jump, Riot Platforms (NASDAQ:RIOT) climbed 4.5%, and Coinbase (NASDAQ:COIN) added 3.6%.
The renewed strength in Bitcoin can be attributed to weaker-than-expected nonfarm payroll data, which exerted downward pressure on the US dollar while enhancing the appeal of risk assets such as cryptocurrencies.
Market sentiment now suggests an increased likelihood of a 25-basis-point rate cut by the Federal Reserve in September, a scenario that favors cryptocurrencies as they tend to thrive in environments characterized by low-interest rates and ample liquidity.
However, it’s worth noting that the recent labor market data comes after five consecutive months of unexpectedly robust readings. Moreover, inflation remains elevated, surpassing the central bank’s annual target of 2%, which could exert some pressure on the Fed’s decision-making process.
