Bitcoin Dominance Reaches 64.89% Amid Strong US Job Data
Bitcoin dominance in the cryptocurrency market has reached 64.89%, the highest level since January 2021. This increase comes amid recent U.S. job data that surpassed market expectations.
US Job Data Highlights
- Nonfarm payrolls rose by 177,000 in April, above the expected 133,000 but lower than March's 228,000.
- The unemployment rate remained steady at 4.2%.
- The strong job report raises concerns about potential delays in Federal Reserve interest rate cuts.
- Higher rates could discourage investment in riskier assets like Bitcoin.
Market sentiment is shifting as investors reassess their strategies based on this economic data.
Factors Driving Bitcoin's Market Position
- Institutional inflows have contributed significantly to the rise in Bitcoin’s dominance.
- Japanese firm Metaplanet raised $25 million for expanding its Bitcoin holdings, targeting 100,000 BTC by 2025.
- Investment firm Prime Two has shifted its focus exclusively to Bitcoin, abandoning Ethereum after six years.
- Increased preference for Bitcoin over altcoins reflects a trend among investors seeking safer options amidst economic uncertainty.
Bitcoin's price was reported at $97,026.39, reflecting marginal fluctuations within a 24-hour period. The overall market is closely monitoring the Federal Reserve's next steps regarding interest rates and economic conditions.