Rate cut expectations rise again, Bitcoin surges to $71,000, Ether breaks above $3,800

The number of job openings in the United States fell to a nearly 3-year low, boosting hopes for a rate cut by the Federal Reserve this year. U.S. stocks closed higher, with Nvidia hitting a new all-time high. Bitcoin surged to $71,063, while Ethereum surpassed $3,800. The top ten cryptocurrencies by market capitalization all saw gains.

Weakening Labor Market Boosts Rate Cut Expectations

The U.S. Department of Labor released the Job Openings and Labor Turnover Survey (JOLTS) on Tuesday, showing that job openings in April fell to 8.059 million, hitting a new low since February 2021. This indicates a sluggish economic growth, raising investors' expectations of a rate cut.

The Federal Reserve will announce its interest rate decision on June 12th next week. Although the market generally expects rates to remain unchanged this time, according to the CME FedWatch Index, the likelihood of a rate cut in September has increased to 66.9%, up from around 50% previously.

Investors will await the U.S. non-farm payroll data on Friday to understand potential actions the Federal Reserve may take in the latter half of this year.

Bitcoin Breaks $70,000 Mark

BTC made another attempt to break through yesterday, reaching as high as 71,063, with significant resistance above, but only 3.6% away from the March historical high of 73,777.

Ethereum Surpasses $3,800

ETH also surpassed 3,800 yesterday, still some distance away from the March high of 4,093. While the U.S. Securities and Exchange Commission (SEC) officially approved 8 Ethereum spot ETFs' 19b-4 forms on May 23rd, the S-1 registration statement needs to be effective before these products can start trading. According to Bloomberg's ETF analysts, it will take at least a few more weeks.

Approval of 8 Ethereum spot ETFs granted, listing still pending

Top 10 Coins All on the Rise

Yesterday, the top 10 cryptocurrencies by market value all saw gains, with Binance Coin (BNB) showing the most remarkable increase of 9.1% in 24 hours, followed by TON at 7.3%.