Bitcoin (BTC) 
$67,982 has recently surged above $97,000, reaching up to $97,895. While the sentiment around Bitcoin remains highly positive, the same cannot be said for altcoins, which have yet to catch up. However, it is anticipated that this optimistic market atmosphere will eventually benefit altcoins as well. What are the driving factors behind this upward trend?
Why is Bitcoin on the Rise?
Following better-than-expected labor data, the stock markets began to rise as recession fears were quelled. Losses incurred since Trump’s Independence Day speeches have also been reversed by the sharp rise in the markets.
In April, 177 thousand new jobs were created, exceeding the expected 135 thousand, though still below March’s figures. How the Federal Reserve interprets these data in its Wednesday assessment will be crucial, with an anticipated favorable outlook.
The S&P 500 saw gains close to 2% today. The daily closing level after Trump announced tariffs on April 2 was surpassed as well. Remember that at the start of the previous month, the U.S. stock markets were experiencing declines akin to those seen in cryptocurrency charts, resulting in daily trillion-dollar losses.
Today, concerns about tariffs are being alleviated, and the fear of recession is dissipating, allowing stock market losses to be recovered. However, cryptocurrencies have not yet achieved the desired gains.
The Role of the US and China
The recent statements by China’s Ministry of Commerce represent a recovery on the tariff front. Agreements with Canada, the first deal set for next week, and easing tensions with China are dissipating the dark clouds of tariffs. We had been discussing descending from the peak of the fear mountain for weeks, and now we are at its base.
Ajay Rajadhyaksha, head of global research at Barclays, remarked:
“This rally seems to rely on the belief that the worst regarding tariffs is over. However, quite the opposite is true. The worst has yet to appear in the data. There is still nothing showing up in the data.”
At this point, it is crucial for the Federal Reserve to step in by lowering interest rates and initiating monetary easing to ease the pressure on employment and spending, which will eventually be reflected in the data.
