(Kitco News) – Crypto prices saw a slight pullback in trading on Monday after Bitcoin (BTC) regained support at $64,000 over the weekend. A Wells notice issued to Robinhood Crypto was the main source of weakness to start the week as the U.S. Securities and Exchange Commission is showing no relent in its crackdown on crypto exchanges.
Stocks extended their end-of-the-week surge to post solid gains as Friday’s softer-than-expected jobs report renewed hopes for interest rate cuts.
“This positive momentum comes after the latest nonfarm payrolls data revealed a lower-than-expected increase in jobs and a rise in unemployment in April, alleviating concerns over an overheating economy and fueling trader optimism that the Federal Reserve might begin rate cuts earlier this year,” said analysts at Secure Digital Markets. The CME FedWatch Tool now shows the market gives a 64% chance that the Fed will cut rates in September, up from 44% last week and 35% on April 5.
At the closing bell, the S&P, Dow, and Nasdaq were all higher, up 1.03%, 0.46%, and 1.19%, respectively.
Data provided by TradingView shows that Bitcoin rallied to a daily high of $65,530 in early trading on Monday, but sank back below $63,000 after news of the Wells notice issued to Robinhood made the rounds on social media.
BTC/USD Chart by TradingView
At the time of writing, BTC trades at $63,325, a decrease of 0.54% on the 24-hour chart.
“Bitcoin has seen a significant rally since the release of last Friday's nonfarm payroll data in the U.S., which has been generally supportive of risk assets, including cryptocurrencies," Secure Digital Markets analysts said. “Despite this rebound, it's important to note that Bitcoin prices are still below their 50-day moving average, indicating ongoing market pressures.”
“For a definitive return to bullish territory, Bitcoin would need to consistently exceed the $66,000 to $67,000 range,” they said.
The analysts noted that Bitcoin’s strength over the weekend followed the return of inflows into spot Bitcoin exchange-traded funds (ETF) on Friday.
“U.S.-listed spot ETFs experienced their most substantial single-day inflow in over a week, pulling in $378.3 million, signaling a shift toward more positive market sentiment following Bitcoin's recovery,” they said.
“Notably, Grayscale's Bitcoin ETF recorded its first daily inflow after a prolonged period of asset outflows, with investors injecting $63 million on Friday,” they added. “This marks a significant turnaround for the Grayscale Bitcoin Trust (GBTC), the largest Bitcoin ETF by assets, which had seen daily outflows for nearly four months following its conversion to a spot ETF structure in January.”
According to MN Trading founder Michaël van de Poppe, as long as Bitcoin holds above $60,000, the bottom is likely in and the case for a continuation of the bull market is strong.
#Bitcoin above $60K and retail isn't here.
This range is completely fine as long as #Bitcoin holds above $60K.
Altcoins slowly waking up. pic.twitter.com/LR7LoGIOig— Michaël van de Poppe (@CryptoMichNL) May 6, 2024
Mixed Monday for altcoins
It was a mixed day of trading in the altcoin market, with a majority of tokens recording slight losses on Monday.
Daily cryptocurrency market performance. Source: Coin360
FTX Token (FTT) was the biggest gainer with an increase of 10.6%, followed by a gain of 10.1% for Book of Meme (BOME), and a climb of 8.7% for Worldcoin (WLD). Bonk led the losers with a 6% decline, while Akash Network (AKT) lost 5.2%, and cat in a dogs world (MEW) fell 4.5%.
The overall cryptocurrency market cap now stands at $2.34 trillion, and Bitcoin’s dominance rate is 53.2%.
