According to PANews, financial markets continued to rise on Thursday. Data from the U.S. Department of Labor showed that initial jobless claims for the week ending September 21 were 218,000, the lowest since May and below expectations, indicating a resilient labor market. Additionally, durable goods orders for August remained flat, defying expectations of a decline, and the second-quarter GDP held steady at 3%. These figures bolstered investor confidence in the fundamental strength of the U.S. economy.
Bitpush data revealed that amid a return of risk appetite, Bitcoin bulls successfully broke through $65,000, reaching a high of $65,887 in the afternoon before slightly retreating. At the time of writing, Bitcoin was trading at $65,235, up 2.84% over the past 24 hours. Most altcoins in the top 200 by market capitalization also continued to rise. Shiba Inu (SHIB) led the gains with a 21% increase, followed by Ethena (ENA) up 17.5%, and Wormhole (W) up 16.6%. On the downside, Hamster Combat (HMSTR) fell 31.3%, Bittensor (TAO) dropped 6.1%, and Baby Doge Coin (BabyDoge) decreased by 5.1%. The overall cryptocurrency market capitalization currently stands at $2.29 trillion, with Bitcoin's market dominance at 56.3%.
At the close of the day, the S&P 500, Dow Jones, and Nasdaq indices all rose, gaining 0.40%, 0.62%, and 0.60%, respectively.
Bitcoin and PCE Report
TradingView analyst Arman Shaban noted that given Bitcoin's recent rise on the weekly chart to the anticipated $65,000 level, strong support is at $52,750, with the price not falling below $49,000. In this context, Bitcoin's short-term targets are $67,700 and $71,800. Additionally, based on previous analysis, Bitcoin's mid-term target is $80,000.
The core Personal Consumption Expenditures (PCE) price index report, which directly influences the Federal Reserve's monetary policy decisions, is set to be released tomorrow. Shaban stated that if the core PCE data meets or falls below expectations (0.2%), the market may experience less pressure for rate hikes, benefiting high-risk assets like Bitcoin as investors turn to digital and high-risk assets amid controlled inflation and looser monetary policy.
Shaban added that if the core PCE aligns with expectations, Bitcoin could continue its upward trend, reaching short-term targets of $67,700 and $71,800. In the mid-term, as inflation concerns ease and interest rates stabilize, Bitcoin could further strengthen, potentially reaching $80,000. However, if the core PCE data exceeds expectations, indicating higher-than-expected inflation, the Federal Reserve may opt for more aggressive tightening measures. Shaban warned that this could strengthen the dollar and exert short-term pressure on risk assets like Bitcoin. In such a scenario, Bitcoin might experience some downward fluctuations, with potential support levels at $62,000 and $60,000. Given Bitcoin's strong fundamental demand and technical factors, such fluctuations are likely to be temporary, with Bitcoin expected to eventually resume its upward trajectory.
Based on currently available economic data, the most likely scenario is that the core PCE will meet or fall below expectations, potentially providing further upward momentum for the cryptocurrency market.
