Unemployment Rising
Recent US jobs data showed a significant rise in unemployment, raising recession fears.
- US Unemployment Rate: Actual 4.3% (Forecast 4.1%, Previous 4.1%)
- US Nonfarm Payrolls: Actual 114k (Forecast 175k, Previous 206k)
- US Manufacturing Payrolls: Actual 1k (Forecast 5k, Previous 7k)
Bitcoin’s Price Reaction
Bitcoin (BTC) dropped over 5%, testing its 200DMA in the mid-$61,000s. Despite BTC dipping below its 200DMA in early July, it quickly recovered, prompting some to speculate if this pattern will repeat.
Market Reactions and Forecasts
- 200DMA Significance: The 200DMA is a crucial support/resistance level for Bitcoin.
- Economic Concerns: August may be challenging for risk assets like stocks and crypto due to macroeconomic factors.
- Fed’s Interest Rate Decisions: Investors worry that the Fed’s decision to keep interest rates steady may have been a mistake, potentially impacting the market negatively.
Sahm Rule Recession Indicator
The latest jobs data caused the Sahm recession warning to rise to 0.53 from 0.43. The Sahm rule signals a recession when the three-month moving average of the unemployment rate rises significantly.
Investor Reactions
Recessions create uncertainty about corporate profitability, leading investors to shift from riskier assets to safer ones. Bitcoin may face further declines.
Could Bitcoin Still Be the Top Crypto to Invest in Today?
Interest Rate Cuts Potential
A recession could lead to significant interest rate cuts by the Fed. Market traders are increasingly betting on a 50bps rate cut in September.
Political Uncertainty
- Election Dynamics: VP Kamala Harris is gaining on Trump in the polls for the November election.
- Crypto Policies: Harris is linked to the anti-crypto stance of the Biden administration, while Trump is pro-crypto. This political uncertainty is affecting market sentiment.
- Democratic Shift: A growing number of Democrats are pushing for a pro-crypto stance, signaling a possible end to anti-crypto policies.
Bitcoin’s Future Potential
Despite current challenges, Bitcoin remains the oldest, most trusted, secure, and decentralized cryptocurrency. These factors continue to make it a strong candidate for investment.
Other Cryptocurrencies to Consider
Solana (SOL)
Solana, a leading smart-contract-enabled blockchain, saw a significant rise from $13 in 2023 to over $200 in 2024, driven by increased adoption, especially in meme coin trading. Currently at $152.50, it is testing its 50 and 200DMAs. History suggests a possible rebound, making it a top crypto to consider
Near Protocol is testing key resistance at $4.60, a crucial support-turned-resistance zone. A potential rebound to yearly highs near $9 is possible, but a drop to mid-$2.0s support is also a risk. Investors should proceed with caution.
The post Top Crypto to Invest In Today August 2 – Bitcoin (BTC), Solana (SOL), Near Protocol (NEAR) appeared first on Cryptonews.
