The recession expectations were "slapped in the face," BTC surged to $62,000

Author: BitpushNews Mary Liu

On Thursday, data released by the U.S. Department of Labor showed that for the week ending August 3, the number of initial jobless claims was 233,000, down from 250,000 the previous week and below economists' expectations of 240,000, easing concerns about an impending economic recession in the U.S. Investor sentiment improved, and financial markets turned to recovery on Thursday.

According to CME's "FedWatch" data, the probability of the Federal Reserve cutting interest rates by 25 basis points in September is 43.5%, while the probability of a 50 basis point cut has decreased to 56.55%.

At the close of the day, the S&P 500, Dow Jones, and Nasdaq indices all rose, increasing by 2.30%, 1.76%, and 2.87%, respectively. The S&P 500 index recorded its largest single-day gain since November 2022.

Bitpush data shows that Bitcoin rebounded from a low of around $54,700 in the early morning, with bulls pushing the price above $59,000, and by the end of trading, it had successively broken through the support levels of $60,000 and $62,000. As of the time of writing, the BTC trading price was $62,414, with a 24-hour increase of nearly 13%.

The altcoin market saw a comprehensive rise, with only two tokens among the top 200 by market capitalization experiencing losses.

Mog Coin (MOG) led the gains, rising by 27.4%, Sui (SUI) increased by 23.6%, and Ponke (PONKE) rose by 20.4%. Aave (AAVE) saw a price drop of 2.1%, while MANTRA (OM) fell by 0.9%.

The overall market capitalization of cryptocurrencies is currently $2.09 trillion, with Bitcoin's market share at 56.4%.

Analysts at Secure Digital Markets stated: "Bitcoin is starting to regain momentum and is experiencing some volatility. We finally saw a decisive breakthrough of the key resistance level at $58,000, and the price is now targeting the next levels of $60,250 and $63,000. Financing rates have stabilized across the board, and since the rally is mainly driven by spot trading, the outlook is bullish."

Multiple Positive News Revives Market Sentiment

On Thursday, a U.S. judge approved a consent order requiring FTX and its sister trading firm Alameda Research to pay $12.7 billion to creditors, ending a 20-month-long lawsuit. Many predict that as former FTX users reinvest their funds into digital assets, some capital will flow back into the cryptocurrency market, significantly enhancing market liquidity and depth.

Meanwhile, Russian President Putin signed a bill legalizing cryptocurrency mining in the country. Ki Young Ju, CEO of cryptocurrency analytics firm CryptoQuant, stated: "Russia seems to be taking action to keep pace with the U.S. The national-level Bitcoin FOMO (fear of missing out) is heating up, and their participation will increase the hash rate, strengthen the network infrastructure, and diversify miners."

The long-standing legal dispute between Ripple and the U.S. Securities and Exchange Commission (SEC) also reached a milestone outcome. A federal judge imposed a $125 million fine on Ripple, ruling that its retail sales through exchanges did not violate any laws. Following this news, XRP surged from $0.50 to $0.64 (an increase of 28%), with trading volume reaching $4.2 billion (up from $1.2 billion on Tuesday), and open interest jumped by $200 million.

Cautiously Optimistic in the Short Term

Despite these catalysts, JPMorgan remains cautious about the future development of the cryptocurrency market, with analysts believing that these catalysts may already be reflected in the prices. The bank stated that Bitcoin's price remains too high relative to its production costs and gold, with the average production cost of Bitcoin around $49,000. Any price movement below this level would put pressure on miners, further suppressing BTC prices.

Market analyst Roman noted that Bitcoin's recovery is currently progressing well, but he "still expects Bitcoin to retest $60,000 before dropping to a low, after which we will attempt to realize a potential reversal."

Charts provided by Roman indicate that Bitcoin's price will first rise to $60,000 and then gradually decline to the support level of $54,000: "The price trend also shows bearish signals (declining volume + rising price), so I expect that once the resistance level is reached, the price will drop."

Famous trader Peter Brandt tweeted on August 8 that he believes there is a 50% chance that Bitcoin will drop below $40,000 before the next rally.