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Market optimism back? BTC at 61K, ETH at 2,600

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Market optimism back? BTC at 61K, ETH at 2,600

New U.S. labor market data shows a larger-than-expected decrease in unemployment benefits last week, easing concerns about an imminent economic recession. This led to a broad rebound in U.S. stocks, with Bitcoin and Ethereum surging by over 10%. Is the market optimism back?

Initial Jobless Claims in the U.S. Decline

The data released by the U.S. Department of Labor on Thursday showed that for the week ending August 3, the seasonally adjusted initial jobless claims dropped to 233,000, indicating that concerns about a collapse in the labor market due to adverse weather conditions were exaggerated.

Encouraged by this news, the U.S. stock market surged, with all three major indexes rising. Nvidia and TSMC ADR both surged over 6%, with Nvidia once again surpassing the $100 mark.

Institutional Investors Remain Bullish on Bitcoin

According to a report by The Block, JPMorgan's latest report indicates that Bitcoin's recent rebound is supported by institutional investors. Based on JPMorgan's indicators, Bitcoin futures prices are higher than spot prices, showing confidence from futures investors in Bitcoin.

JPMorgan estimates Bitcoin's production cost to be around $45,000. If the Bitcoin price remains at or falls below this level for an extended period, it will put pressure on Bitcoin miners, further exerting downward pressure on Bitcoin prices. However, Bitcoin has rebounded from $49,000 earlier this week to above $62,000, reaching $62,054 at the time of writing.

In addition, WisdomTree's Bitcoin Spot ETF saw a net inflow of $118.5 million on 8/8, marking a new high since its listing. On 8/7, the Bitcoin Spot ETF had a net inflow of $45.1 million, indicating that investors are buying Bitcoin on dips.

Is Jump Trading's Selling Pressure Over?

Ethereum also experienced a strong rebound yesterday, rising from around $2,300 to above $2,600, a surge of over 14%.

As reported earlier, Jump Trading's wstETH holding address still has 21,394 wstETH tokens. The selling pressure seems to be coming to an end.